Today nasdaq did the obvious and dived down below 12300. But the recovery has been good so far. 12680 has been the highest as of when I write this post. Is the Great Nasdaq Sale done?
I do not think so. Investors are still nervous. Recovery means the economy opening up. Investors with risk appetite will move their holdings to Infrastructre, Energy, Industrials. Volatility keeps rising. More steam needs to be released. So where does Nasdaq go to? back to 12250? or 12000? or is it lower - 11050 for example? or is it somewhere between, 11500?
If the Vix still has more room left, then Nasdaq can fall to 12000, and potentially to 11500. And it seems the Vix is not done yet. So it is still to early to go long on any of the Tech 100s.