- The NASDAQ 100 rallied a bit in the pre-market trading on Tuesday as we continued to stretch to the upside.
- This will be a very interesting market to watch because we do have the interest rate decision coming out on Wednesday of the United States.
- I think a lot of people will be paying close attention to that. And it will most certainly have an effect on this market.
NASDAQ 100 Overdone?
We are a little overdone and at this point in time, I would anticipate that sooner or later we are going to see some type of pullback. I also believe that there will be people willing to buy on that pullback unless of course the Federal Reserve shocks the market somehow, which isn’t entirely impossible. So do keep that in mind. All things being equal, we’ve been in a nice up trending channel for a while, and I don’t know that it changes anytime soon. And I would anticipate that eventually we are going to try to get to the 25,000 level above.
The question is how long will it take to get there? Loose monetary policy does help stocks, but if we get some type of nervous type of reaction out of the Fed or maybe an unsure press conference, that could send things into a tailspin rather quickly. Keep in mind that the usual suspects, the Magnificent Seven, if you will, are driving most of this, so pay attention to Nvidia, Apple, et cetera, as to where we go next.
If we do pull back, the 50-day EMA is right along the trend line of this channel, and of course, the 23,250 level is support as well. It’s really not until we break down below that I would be worried about the overall trend. Because of this, I remain bullish, but I also recognize that we’re a little overdone.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
