- The Nasdaq 100 traded quietly on Tuesday ahead of the Federal Reserve’s rate decision, holding within a tight range.
- The index remains bullish, with support near 25,500 and 25,000 and potential upside targets at 26,000 and 27,000.
The Nasdaq 100 was noisy during trading on Tuesday, but remained within a fairly tight range. This makes sense considering that the Wednesday session features the Federal Reserve interest rate decision, which naturally keeps the market subdued. I think we’re waiting to see whether the Federal Reserve will, in fact, come in and bail everybody out on Wall Street as it typically does, given enough time.
We’re also paying close attention to numerous earnings reports over the next few days, so this market is clearly in a state of hesitation. It’s worth noting that Monday’s candlestick sliced right through the top of the up-trending channel, showing significant impulsivity to the upside. Short-term pullbacks will likely be buying opportunities near the 25,500 level and then again at the 25,000 level. The 25,000 level has been important multiple times, and the 50-day EMA is reaching towards that same area.
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The market remains in an up-trending 45-degree channel, which makes it reliable and bullish—at least in theory. Traders will continue to view the Nasdaq 100 through that lens. To the upside, I believe we will challenge the 26,000 level, and a move above there could open up the possibility of reaching the 27,000 level.
I have no interest whatsoever in shorting this market and continue to see it as a bullish, buy-on-the-dip scenario, consistent with the trend of the past five months or so. At this point, it seems like a “steady as she goes” type of situation in the NASDAQ 100, and with the earnings reports coming along with central bank influence, we are waiting to get a reason to go higher I believe.
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