Alternatively, consider this a situation where you continue to see a lot of noise in this market and realize that you need to be very careful with your position size. The NASDAQ 100 was initially lower during Thursday’s trading, but continues to find support near the 12,500 level. The market is also below the 200-day EMA, which also indicates support. So I think the market will still find a lot of buyers, but given enough time, we would be looking at a situation where the market continues to move, whether it’s Wall Street or not. traders believe that the Fed will tighten monetary policy and of course the latest economic announcement and of course earnings. However, it should be noted that Wall Street has done a fantastic job of ignoring reality, and I don’t expect that to change anytime soon. Advertisement Put your technical skills to the test now! OPEN FREE DEMO ACCOUNT If we pass 12800 level then there is a chance we can go to 13000 level and then maybe even 13200 level. After that we have the 13,600 level which was an important high for the market. You could also argue that we are forming a bit of a bullish flag, so that comes into play as well. A rising flag is naturally something that many traders pay close attention to because the market likes these patterns. This is an obvious pattern and is why many traders end up in the business. Be careful with your position size . Alternatively, think of this as a situation where you continue to see a lot of noise in this market and realize that you need to be very careful with your position size. Volatility is likely to remain a major issue, so based on that I think it’s probably only a matter of time before we have to make a bigger move. If we were to reverse and break below the 200-day EMA, the 12,000 level would come into the picture as an important support, not only from a structural perspective, but also from the psychology associated with such an indicator. Either way, everyone seems more than willing to ignore higher interest rates and inflation, as we’ve seen time and time again. All things being equal, the market looks like we’ll continue to see quite a bit of „buy on dip” behavior going forward, but anything below that 12,000 level could be catastrophic.