- Over the past few months, the NASDAQ 100 has been somewhat of a juggernaut, and nothing on the charts early on Tuesday indicates that this incredibly bullish behavior is going to stop.
- Because of this, you have to be very cautious about what you do, and how big you do it in this market.
As you can see, on Tuesday, we made a slight withdrawal in the early hours before finding buyers once more. The market is currently going upward at a 45-degree angle, which is obviously highly positive. It appears that 18,000 and the 20-day EMA will provide short-term support at this moment. That is followed by the 50-day EMA and, at the bottom, 16,950. Since all of those spaces are potential floors, I believe the market will continue to rise. Right now, I believe that hitting the 20,000 mark above is becoming a very realistic goal. It goes without saying that this is a topic that would garner a lot of interest and likely make several headlines. But I fail to see anything that would prevent us from arriving.
Momentum is King
Keep in mind that momentum breeds momentum. The NASDAQ 100 is a clear winner as investors all over the world are betting that the Federal Reserve will lower interest rates later this year. In addition, there is a rush to develop anything pertaining to artificial intelligence, which will undoubtedly affect the NASDAQ 100. That's why I think it's a good idea to consider every downturn a possible opportunity to buy. This has long been a workable plan of action.
That does not imply that you take a commanding stance right away. Simply said, it indicates that you are buying on dips, selling when prices rise a little too high, and then repeating the process. In my opinion, the market has essentially been acting in this manner for the past few months. Has the market had too much? It is, by most measures, but it doesn't appear to be having an impact. This item is simply being propelled straight upwards by momentum. Having said that, this is a great buy on the dip index if you can simply be a little patient and focus on your timing.
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