- The NASDAQ 100 has been a little bit negative during the trading session on Tuesday, as Jerome Powell has been speaking in front of Congress.
- This does make a certain amount of sense because there are a lot of concerns about inflation in America.
- We also get the CPI report on Wednesday, which could have a major influence on how people see inflationary headwinds going forward.
Keep in mind that the Federal Reserve is very tight with its monetary policy, and it's likely that it will probably have to sit somewhat still. With that being the case, it does work against technology stocks and risk appetite.
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I just saw some things that have come across my desk about earnings that weren't exactly rosy. So, with that being the case, I think we're just stuck in this pattern. Wall Street inevitably buys the dip. That's what Wall Street does. It's Wall Street job to sell you stocks. But I think right now we are looking at a market that just doesn't have anywhere to be the 21,000 level underneath will more likely than not end up being supported right along with the 50 day EMA that sits just under current pricing.
So, with all of that being said, I think you've got a situation where traders are likely to continue to look at this as a buy on the dib scenario that eventually breaks out above the crucial 22,000 level, which of course has been like a ceiling for some time. So, I'm somewhat neutral with more of a bias to the upside. I definitely don't have any interest in shorting the NASDAQ 100 anytime soon. At this point in time, it remains more or less a “buy on the dips” scenario as far as I can see, and I have learned a long time ago not to short US indices on the whole.
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