• The Nasdaq 100 has gone back and forth during trading on Tuesday as American traders came back to work after the Juneteenth holiday.

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• Doing so shows a certain amount of hesitation, but we are still very much in an uptrend. The 15,250 level above is a significant barrier, as it was a recent high that the market considered that level important.
• All things being equal, this is a market that I think continues to see a lot of noisy behavior, but if we were to break down below the bottom of the candlestick for the trading session on Tuesday, that is likely that the market could start to fall even deeper.

At this point, the market needs to take a bit of a breather as it’s just that it does make a certain amount of sense that we could go down to the 14,500 level, an area that has shown quite a bit of previous resistance. Furthermore, it’s also the top of a short-term consolidation area, and at that, the 50-Day EMA sits near the 14,000 level, an area that should offer a significant amount of support as well.

Traders Should Look for Buying Opportunities

At this point, the Nasdaq 100 has shown quite a bit of bullish pressure over the last several weeks, but at this point, the market will likely continue to have to address the idea that just a handful of stocks have been driving the entire rally. With this being the case, the market probably needs to deal with a little bit of reality, but I certainly wouldn’t be short of this market, it is far too aggressively bullish.

At this point, it seems like traders will continue to look at it sounds potential buying opportunities, but at this point, I think we are far too noisy to hang on to big positions. I think if you get a little bit of a pullback, it does give you the idea of finding value given enough time. If we can continue to find that value, then I think a lot of people would be attracted to this market. After all, this has been the momentum trade for a while, and it must be said that momentum is the one thing that seems to be driving the market more than anything else. If we can break above the 15,250 level, it’s likely that we go much higher.

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