- The Nasdaq 100 initially pulled back just a bit during the trading session on Tuesday, but it does look like it's going to push its way higher.
- With that being said, I think we've got a situation where traders continue to look at each and every dip as a potential buying opportunity. And now I'm watching the 20,500 level very closely.
If we can break above there, then it's likely that the next leg higher in the NASDAQ 100 starts to come into the picture. At that juncture, then who knows where we end up, but it certainly will be higher. Short-term pullbacks continue to see plenty of support, especially near the 20,000 level, but we are 350 points above there as I record this video, so I'm not overly concerned about it.
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Plenty of Reasons to Go Higher
I think given enough time; this is a market that will continue to see plenty of reasons to go higher. And perhaps the most important one is going to be the fact that the Federal Reserve is likely to continue loosening monetary policy. There are a lot of questions about certain companies, but as we are in the midst of earning season, those should be answered pretty quickly.
I do think at least during the day on Tuesday, it's probably going to be more about Federal Reserve expectations than anything else, because let's face it, there's only about seven stocks that anybody cares about in most of these indices.
We don't have any of those releasing announcements during the day, so I think you've got a situation where traders are just looking at the overall ability of certain market players to continue to benefit from the loose monetary policy decisions.
After all, that has been game play for quite a few years, and I just don't see how that would change anytime soon. More liquidity typically means higher prices in the stock markets.
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