- The Nasdaq 100 has shown itself to be bullish again during the early moments of the Monday session as we continue to see traders bet on the idea of a Federal Reserve that is going to rapidly cut rates.
- This helps stocks unless it's a panic. That's an entirely different conversation. But as things stand right now, I think you have to look at this as a market that could very well be trying to get to the top of the channel that it's been in.
- That means we could go as high as 25,000 in the near term.
And I think at that point, you probably would have a little bit of psychology come into the picture, perhaps keeping the market somewhat down, but that would be a short term barrier, I would imagine. Short term pullbacks could happen at this point, but I think those short term pullbacks will be bought into, as they represent a little bit of value in a market that's obviously been very bullish.
Top Regulated Brokers
If Break Lower
If we do drop from here, the bottom of the channel makes quite a bit of sense, which happens to be backed up by the 50 day EMA at the same time and the 23,250 level. So, with all of that, I think you need to consider this a buy on the dip market and understand that eventually we will perhaps have to make a bigger move. But as things stand right now, it's just grinding higher.
As usual, with the Nasdaq 100, you will have to pay attention to the same handful of stocks, all of the magnificent seven stocks, and see what they're doing because they're the entire market. I have no interest whatsoever in shorting this market, although after the Wednesday session, things may change, but I suspect that the Fed will do everything it can to not upset the markets.
Ready to trade our stock market forecast and analysis? Here are the best CFD stocks brokers to choose from.