The biggest concern I have right now is that the interest rate markets are being driven by games being played with the headlines. Because of this, and the overextension of price, it is difficult to be aggressive.
NASDAQ 100
The NASDAQ 100 continues to show quite a bit of bullish behavior. I think at this point in time, it is likely that we continue to move with rates, and rates of course are dropping in the United States. But we also have to keep in mind that rates are being driven by people playing games in the media. So, the latest headline will throw rates around; it will throw the NASDAQ 100 around. This remains a major issue for traders at the moment.
The biggest concern I have right now is that the markets are looking at the noise coming out of the Middle East and trying to figure out how we get to peace. They clearly are pricing them in, but I think if we don't get peace and rates spike, this is a market that's due to a massive pullback.
Risk Management in a Volatile Environment
I don't want to say I'm bearish; I'm not. I'm just saying looking at the chart and thinking that we're just going to shoot straight up in the air from here is probably being a bit ridiculous.
So, with that, I look at this as a market that has a floor near the 26,250 level. If we can stay above there, we'll be fine. If we break down below there, then I think we start to see a deeper correction. To the upside, the most obvious target would be 27,000, but this type of behavior can get really dangerous really quick and therefore, I would not put too much into the market even if it remains bullish.