NASDAQ on track to remain in its broader trading range
Sure, it's been a wild ride, but one should never confuse volatility with a "trend". NASDAQ managed to bounce back and even move up a little after some dramatic intraday negativity. We're not out of the woods yet, but at least we can still see some sunshine. Nonetheless, NASDAQ does indeed remain in a broader trading range. At worst, you can say that we have had a "mini-correction".
NASDAQ futures are up strongly this morning, suggesting a dramatic short squeeze pop at the open. But... what happens after that initial pop and after the short sellers have covered their positions is anybody's guess. We could indeed see a strong recovery bounce for the rest of the day as traders pile on and more shorts buy to preserve their gains from the recent selling (or limit their losses if they shorted late in the game), or... we could see people selling and shorting into any rallying.
And it's a Friday, so a lot of short-term players will tend to close out positions (like buying to cover short positions) ahead of the weekend, when anything can happen.
As the latest employment report confirms, the economy continues to incrementally improve, also confirming that the recent sell-off and anxiety is seriously misguided.
-- Jack Krupansky