This market strikes me as the proverbial hot mess. Inflation hopes and fears have dominated the headlines, resulting in some choppy rotation among individual stocks and groups seen as benefiting or not benefiting from inflation. This has meanwhile done little to change the fact that the NASDAQ Composite Index remains in a wide sideways range extending back to February without any meaningful resolution one way or the other.
The NASDAQ’s move back above the 50-day line on Monday now provides a clear reference for near-term support at the line. However, one could easily argue whether the 50-day line is all that meaningful for an index that has flopped around the line while remaining trapped in a wide-ranging price consolidation