The Nasdaq 100 fell early on Friday, as we continue to see a lot of volatility. That being said, we continue to see value hunters out there willing to get involved each time we find value.
Nasdaq 100
The Nasdaq 100 fell a bit during the early part of the trading session on Friday, but the 50-day EMA has offered a bit of support as we continue to turn around and show signs of life. Every time we do drop, the 50-day EMA is an indicator that a lot of people will be watching very closely, and the fact that we are trying to close out the session with a bit of a hammer suggests that we still have plenty of buyers out there willing to take advantage of value.
The 30,000 level above is a potential target. I think breaking above there then opens up the possibility of reaching the highs again near the 30,600 level. If we were to turn around and break down below the 50-day EMA, it's possible that we could see the 28,500 level be targeted as a massive support level.
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Market Consolidation and Technical Outlook
We have been seeing a lot of back and forth after shooting straight up in the air, but recently we've seen a bit of choppiness and a bit of consolidation working off some of the excess froth from previous trading. The artificial intelligence trade continues to be one that's important, and with this, I think the market is likely to see a lot of questions asked of it, but ultimately, this should resolve to the upside.
If we were to break down to a fresh new low, then maybe we reset somewhere closer to 26,000, but right now that's not my base case scenario. My base case scenario is to simply follow the fact that buyers continue to return to this market every time it drops.
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