- The Nasdaq 100 initially tried to rally during the trading session on Wednesday but gave back gains to show signs of hesitation right at the 50-day EMA.
- That being said, I don't really think it's that big of a deal.
- The real reaction wasn't to the 50-day EMA, but I think the fact that the jobs numbers out of America are going to be delayed.
Rate Cut Delayed?
What that means is that the odds of a rate cut coming quickly might have just taken a little bit of a hit. So, we'll just have to wait and see how that plays out. But the Nasdaq 100 looks as if it's at least trying to fight back. So we'll just have to wait and see. The nice thing about forming an inverted hammer, at least that's what it looks like we're going to form for the day, is that if we break above the top of it, that is a sign of resiliency. And that, of course, is strong.
You like to see that. If we can take out the 25,000 level, that is also bullish. And I think ultimately, we will go looking towards the highs again. If we break down from here, dropping below the 24,400 level, then we could drop down to the 23,250 level. At this juncture, though, I think a lot of this comes down to the shock of the potential of a Federal Reserve waiting to cut rates due to that. And then, of course, we have a situation where perhaps the Nvidia earnings after the bell will have a major influence on where we go next. After all, Nvidia is like 14% of the market. So, keep that in the back of your mind. We're still in an uptrend. It's just in a state of flux.
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