Although yesterday’s trading in the Nasdaq 100 produced a slightly lower value than this past Friday’s highs around 26,757.00, Monday’s results will be hailed as a victory by many stock market observers. The Nasdaq 100 opened yesterday’s trading with sharp losses, this as cautious sentiment effected early reactions due to noise about the Iranian ceasefire being in jeopardy. However after touching a low around 26,440.00, the Nasdaq 100 finished yesterday near 26,590.00.
The ability to rise solidly and back within sight of Friday’s record highs attained, sparked buying momentum and has caused an additional wave of bullish sentiment early today. As of this writing the Nasdaq 100 is around the 26,685.00 ratio with fast results flourishing. Concerns regarding the status of the Iranian ceasefire are still factoring into trading this morning, but folks are showing buying power.
Uncertainty Exists But Buying Momentum Has Remained
Nervous trading will continue to be seen in the Nasdaq 100 certainly, the shadows of war and doubts which continue to be talking points regarding concerns about AI investment running out of strength are still being heard. But the Nasdaq 100 which was trading near the 22,830.00 level on the 31st of March has delivered an epic reversal higher and now is fighting with apex territory. Speculators who have had the courage to follow momentum upwards have likely profited.
Uncertainty regarding the short and near-term are problematic, but then again there are always doubts regarding why a trader should not participate in the stock markets. The Nasdaq 100 has cast away fears and largely shown that financial institutions and large players felt it was vastly oversold. The struggles the Nasdaq 100 has fought over the past handful of months with relatively unimpressive upwards results has now been washed away – for the time being.
Forward Thinking via The Looking Glass
Cautious day traders cannot be blamed for having stood on the sidelines the past two and a half weeks. The momentum upwards has likely surprised some large players too who have been caught being too conservative.
Having made outstanding gains since the end of March, and with the Iranian situation still shadowing market sentiment, people cannot be blamed for thinking the vast majority of gains have now been seen and choppy conditions will ensue.
And perhaps that is correct, stock indices have a habit of making large gains in short bursts, but it is what happens next incrementally that will be important for day traders.
Can the Nasdaq 100 sustain its upwards momentum? Have fears about a selloff in AI and other high tech companies been resolved?
The Nasdaq 100 is within sight of last Friday’s record value, if good news develops regarding ceasefire talks between the U.S and Iran in the near-term this would help the index likely go higher.
Day traders like everyone else will have to decide which direction to choose.
Nasdaq 100 Short-Term Outlook:
Current Resistance: 26,720.00
Current Support: 26,640.00
High Target: 26,890.00
Low Target: 26,410.00