NASDAQ set to stabilize after a little breather
NASDAQ did indeed have a little breather over the past two days, and did so without incurring any significant damage. That's a good sign, but... the danger at this stage is that buying enthusiasm may have completely dried up, so NASDAQ could be poised for a bear attack, especially after all the heavy hitters get back to their desks next week after the long Labor Day weekend and even longer summer break.
NASDAQ futures are up modestly, suggest a nice recovery bounce after the little breather, but the open question is whether people pile on to that rally or sell into it, and whether there is any significant enthusiasm for buying any dips during the day.
Today is a Friday before a long, holiday weekend, so short-term market participants will tend to lighten up or even close positions ahead of the weekend, when anything can happen (Ukraine?). That's a net lightening, but we don't know if these short-term market participants have been net long or short during the week. So we could see a little consolidation as bulls lighten up, or... a little rally if bears are lightening up by buying to cover short positions.
-- Jack Krupansky