- The NASDAQ 100 remains choppy as traders balance seasonal optimism with uncertainty around global rate decisions and trade issues.
- Despite volatility, key support zones continue to offer value in an ongoing uptrend that favors buying pullbacks.
The NASDAQ 100 continues to see a lot of choppiness as the market continues to ask questions of the overall attitude of markets. Ultimately, this is a scenario where I think you have to look at this as a market that, although it generally is positive in December, we also have a lot of questions about interest rate decisions coming out of several central banks, not the least of which, of course, is the Federal Reserve. And of course, we have to ask questions about trade still. This is still an ongoing battle, and that does have a certain amount of influence.
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Support Levels and Value Hunting
That being said, I think the market is trying to come to terms with the fact that perhaps the United States ends up being much stronger than people anticipated early next year. Short-term pullbacks at this point, I think, open up the possibility of value hunting, especially near the 25,000 level, as it is backed up by the 50-day EMA. Even if we were to break down below there, I think 24,000 continues to be a significant floor.
Ultimately, anytime this market pulls back, I look at it as a potential buying opportunity in what has been a strong uptrend. Quite frankly, we've been straight up in the air and then very convincingly bullish since April. And a little bit of a pause in the form of consolidation makes sense here.
So I think that's basically what we've been seeing. I think we're in a scenario now where it is essentially consolidation with more of an upward tilt at this juncture. I think that continues to be the case. And with that, I am a buyer of dips. I recognize that things will get volatile from time to time, but it really hasn't changed the overall attitude of participants from the longer-term perspective.
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