The Nasdaq 100 is traversing within record territory as of this morning, this as the index is near the 25,843.00 in early futures trading.
Timing the market is everything for day traders. Trying to predict when a dose of momentum is going to suddenly emerge is a time honored puzzle which often is based on a casino like wish. Yesterday’s gap higher in the Nasdaq 100 took the index, which had already been doing quite well, to new record levels. The Nasdaq 100 exploded upwards from Friday’s finish near a healthy 25,400.00 and gapped to around 25,600.00 as trading began following the weekend.
The Nasdaq 100 didn’t stop there and continued to rise yesterday. No, it wasn’t a one way ride upwards, day traders still needed to use risk management to guard against incremental reversals lower, but higher action and the 25,800.00 level began to see challenges. As of this writing early on Tuesday via futures trading the Nasdaq 100 is near the 25,843.00 ratio with fast trading continuing to flourish.
Bullish Trend and Optimistic Sentiment Sounding
The ability of the Nasdaq 100 to march into new record highs should not be surprising to anyone. The index has seen a solid bullish run upwards since April as the aftermath of tariff rhetoric concerns changed into an acceptance of the new realities coming from the Trump White House. This past Friday the U.S issued positive inflation results when the Consumer Price Index Reports showed lower than anticipated outcomes.
President Trump’s trip to Malaysia has also ignited hopes that the U.S and China may find a pathway to a tariff agreement. The jump higher in the Nasdaq 100 yesterday upon opening was helped by announcements that a U.S and China deal may be possible, this instead of the loud threatening rhetoric which came from the White House a couple of weeks ago. The Nasdaq 100 although it had been choppy the past couple of weeks still maintained it higher elevations, and this should have been a signal to day traders that new highs would be climbed.
Short and Near-Term Speculative Trend
Today’s early trading in futures shows that positive momentum is still being seen and that buying sentiment is strong. Yes, there will be reversals lower that have to be dealt with by day traders – and perhaps even a downturn that is sustained – but speculators who try to fight against the current upwards trend may find it difficult to profit.
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- The Nasdaq 100 has shown the ability to sustain important milestone levels. The 25,000 level almost looks very far away and below current support levels.
- Now the 25,900.00 could become a target by overly ambitious large traders and it would not be surprising to see it toppled in the short or near-term.
- The U.S government is still shutdown and the Federal Reserve will lower its Federal Funds Rate by 25 basis points on Wednesday – these things are widely known and anticipated.
- The bullish streak of the Nasdaq 100 is not guaranteed to continue, but betting against it may be quite dangerous.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 25,850.00
Current Support: 25,833.00
High Target: 25,930.00
Low Target: 25,775.00
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