- The NASDAQ 100 has continued to grind higher during the month of July, and it now looks as if we are trying to do everything, we can to continue that heading into the changeover into the month of August.
- Short-term pullbacks are very likely to be at this point, mainly due to the fact that we are just running out of volume and, interest.
- Most traders that are trading with significant size tend to holiday in the month of August, and that means that your expectations for big moves in August typically will be better served to be squashed.
Uptrend
Regardless of anything that happens in the month of August, we will certainly still be in an uptrend, so I look at the market as one that I am buying dips and making profit as it comes. Longer-term, I fully anticipate that we are going to go toward the 24,000 level, maybe even the 25,000 level. The price action this year has been nothing short of insane, as we had a massive meltdown, only to see an even more ferocious rally. In an environment like this, it’s obvious that no matter what happens, there are people out there willing to buy this market, as it seems like every other day, we get a headline about tariffs or trade problems that could end up being negative for the markets, but they are forgotten about the next day. In other words, the buyers are very aggressive, and it looks like any correction would be welcomed as a buying opportunity.
Ultimately, this is a market that I would like to see pullback toward the 22,250 level and bounce, but I don’t even know forget that deep of a correction. Keep in mind that the 23,000 level is also important, at least from a support standpoint. Again, to the upside think we are looking to the 24,000 level, but it might need a little bit of a pullback in order to offer enough value to get big money to come in and push things higher.
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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.