In early Nasdaq 100 futures trading this morning the index is showing an ability to sustain bullish momentum which has seemingly turned on an ignition switch of speculative fuel.
The Nasdaq 100 is near the 22,959.00 mark as of this writing. The bullish momentum seen in the index since the their week of April when the Nasdaq 100 was around 17,600.00 is nothing short of remarkable. Since busting through all-time highs in the third week of June, the Nasdaq 100 has shown an appetite for higher ground. Now the 23,000.00 target is squarely in focus. Velocity in the Nasdaq has been red hot.
Before day traders blindly set their goals on this seemingly approaching milestone, they should take a deep breath and remind themselves markets can move lower. There isn’t a one way lock on direction. Short-term speculative positions are not guaranteed to win. Having provided that warning, the Nasdaq 100 is in the middle of a strong buying trend and it might not reverse violently in the short or near-term.
Risk Events and Fear of Reversals
U.S inflation data will be released today and tomorrow. Retail Sales numbers will be published on Thursday. If the inflation numbers presented today are within the anticipated notions of investors, this could help spur on more buying. Yes, tariff concerns linger because of the way the U.S White House negotiates its trading pacts, but the deadline is on the 1st of August and investors may believe the trend in the Nasdaq 100 is too good to ignore no matter how large the shadows.
The ability of the Nasdaq 100 to climb was also given a bit of energy last night. Nvidia and the Trump administration made an agreement which allows the company to sell tech into China. This will help bolster short-term behavioral sentiment, and perhaps has already has within the Nasdaq 100. If U.S investors upon their arrival into the markets today, begin their trading session with an acceptance of what the Nasdaq futures markets are accomplishing, new record cash heights could be seen today. Yes, traders should be scared of reversals, but looking for upside is not illogical.
Near-Term Speculating and Remaining Realistic
Traders of the Nasdaq 100 need to remain realistic regarding their targets. Looking for upside is likely going to be the preferred choice of speculators short term, but lofty goals that are out of reach because of too much volatility can knock a trader out of a position before it really gets a chance to maneuver. The Nasdaq 100 trades fast and lower moves can be painful.
Conservative leverage and nearby targets which cash out winnings is a good way to profit.
Looking for the higher technical ground is human nature, but using take profits to cash out upside action which has been accomplished before it disappears because of lower price action is a solid method.
The 23,000.00 level is looking at everyone in the face, but the 29,970.00 and 29,980.00 ratios are their for the grabbing speculatively.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 22,973.00
Current Support: 22,964.00
High Target: 23,040.00
Low Target: 22,940.00
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