NASDAQ 100 Technical Analysis

The NASDAQ 100 has done almost nothing in the early hours on Tuesday as it looks like we are trying to determine whether or not we can continue the momentum that we had seen from Monday. All things being equal, this is a market that could pull back. And if it does, I think the 19,500 level could be an area that a lot of people will be paying attention to. The market has recently seen quite a bit of upward momentum over the last two plus weeks now.

And it looks like we are trying to recover from the idea that the Federal Reserve might not cut as rapidly as people thought. This has been the game that Wall Street plays. They freak out because monetary policy might be tighter and then they start going to financial outlets and suggesting that maybe 50 basis points are possible. Some are even getting 75 basis points, and then it gets the people to throw money into the market again, and then they do the rug pull. So that’s the game we’re in right now.

It’s all about manipulating headlines and expectations. Will the Federal Reserve cut in September? Probably. It’ll more likely than not be 25 basis points. Quite frankly, if it ends up being 50 basis points, stocks might rally initially, but that will almost certainly be thought of as a negative turn of events because it could show a bit of fear by the central bank. As things stand right now, this remains by on the dip, but I wouldn’t get too heavily involved in this index.

For a look at all of today’s economic events, check out our economic calendar.