The interest rate situation continues to be a major factor at the moment, as Americans were away on Monday.
NASDAQ 100
The Nasdaq 100 was closed for the Monday session due to Labor Day. There was some futures trading going on in very thin conditions. I would not read anything into the latest candlestick. Besides, it's basically a mirror image of what we saw on Friday. A little bit positive.
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But at the end of the day, what you're looking at is a market that's got a lot to think about.
There is a very clear tug of war right now
The first thing, of course, is that there is a very clear tug of war right now. Semiconductors and AI momentum remain strong. However, the biggest constraint right now is interest rates. Interest rates remain a constant thorn in the side of bulls.
And it's worth noting that the situation in the Middle East remains very positive for rates going higher, as we continue to see missiles thrown back and forth.
With this, I think you've got a situation where we have to watch the PPI on Thursday, but more importantly, the CPI on Friday and the Federal Reserve interest rate decision next week in the middle of the week.
Both of those could be big movers of this market, but what I will say about the NASDAQ 100 that I find interesting is that it has remained resilient regardless.
And in this environment, that's pretty impressive, as quite frankly, it's had plenty of reasons to fall. So in this situation, I find this more of a buy-the-dip market, and I believe that will continue to be the overall theme here.
The 50-day EMA is near 29,225 and rising. I think it's probably something that we will continue to see a little bit of a floor in.
I don't expect big moves without some type of external factor coming into the picture between now and the Fed interest rate decision. I could be wrong, of course, but right now there's nothing on the schedule that I think would overwhelm that unless, of course, CPI numbers get drastically hotter. Then that could be a big out.
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