- The NASDAQ 100 initially tried to rally on Friday but gave back gains as we began looking very negative by the end of the day.
- At this point, the market looks as if it is going to fall and test the 12,250 level.
- If we can break down below there, then it really starts to send the market much lower.
It’s interesting to see that the market is likely to see more negativity heading into next week, due to the fact that the Federal Reserve is going to have a very hawkish statement on Wednesday.
The volatility does tend to breed more negativity, due to the fact that it also breeds uncertainty. Uncertainty is something that investors hate, so it makes quite a bit of sense that we would see selling. Furthermore, you also have to pay close attention to the fact that Snapchat mentioned that they are having trouble with advertising models, and people are starting to worry about the idea of other highflyers in the technology sector.