The NASDAQ 100 broke down a bit Tuesday to reach the 50-day EMA.The 50-day EMA sits just a bit above the 12,000 level, and I think there’s a lot of interest in that area.Even if we break down below there, I think we could see buyers come back into this market closer to the 11,500 level.

Impact of Interest Rates

Breaking down below the 11,500 level is more likely than not going to be the gateway to much lower pricing, with a stop at the 11,000 level. It’s clear that technology stocks are suffering, and that does make quite a bit of sense considering that we have seen so much negativity out there, and technology stocks do tend to be highly sensitive to interest rates. Ultimately, the interest rates out there continue to work against the value of this index, and of course, they have been rallying quite drastically.