Despite a start with a negative bias on Monday, NASDAQ managed to reclaim another chunk of Thursday's losses. Traders tried to push NASDAQ down during the day, and succeeded, a little, but it bounced right back. That's a good sign.
Traders are flip-flopping this morning with futures up and then down. No conviction either way.
The "testing" process will continue – if NASDAQ dips, we look to see if people are buying the dip, and if NASDAQ rallies, we look to see if people are selling into the rally.
whatever the emerging trend is, expect lots of volatility, volatility, and volatility.
With two days of modest rallying behind us, NASDAQ is once again poised within 1% of the March peak. And once again, NASDAQ is poised to either breakout above that peak, linger below it, or pull back and trade back down in the trading range.
The overall U.S. economic picture continues to be modestly bright, even if minor speed bumps, rough patches, and dark clouds pop up on occasion. The geopolitical picture is a bit messy, but nothing that the U.S. economy can't readily handle in stride.
I continue to be on the lookout for the potential for occasional 50 or even 100-point dips, but overall NASDAQ is being remarkably resilient, suggesting that the mini-correction of March and April is likely behind us for good.
And I am really on the lookout for any silly, mindless 10% dips on solid stocks. Those are my preferred investment right now.
-- Jack Krupansky