The NASDAQ 100 is struggling early on Thursday, as traders are dumping tech, and semiconductors specifically. With this, the market is looking to find whether or not this is something with lasting influence.
NASDAQ 100
The Nasdaq 100 has fallen pretty significantly during the trading session here on Thursday to face the wrath of tech selling around the world.
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Quite frankly, this is a market that continues to see a lot of questions about the AI trade, and of course, the selling that we had seen in South Korea overnight was pretty ugly. This is an environment that I think a lot of people will be watching closely to see whether or not there is a real shift in the market, or if this is a sudden knee-jerk reaction.
I think we're starting to see later in the day that this is a bit of a knee-jerk reaction.
I remain bullish on the Nasdaq 100 and still believe that traders will be looking at this as a market that is buying on the dips. As you can see, the shape of the candlestick is trying to form a bit of a hammer.
With rates dropping, that helps. Now, rates dropping in America are also due to the fact that people are running for cover, but it starts to make valuations of some of these high flyers a little more palatable.
Ultimately, this is a bullish market. We've had a pretty steep pullback, but we have not broken significant structure yet. So, if we get yield relief again and it continues to drop, then it makes sense that traders may try to find some value.
When you look at the longer-term structure, it's still bullish. We still made a fresh new high just 2 weeks ago, and I think value hunters may return. I remain positive on the Nasdaq 100.
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