- The NASDAQ 100 started to really take off at the end of the month of June, breaking above the massive all-time high near the 22,200 level.
- That being said, the market looks as if it is getting a little overdone, but I fully anticipate that the month of July should be positive overall.
- We may get the occasional pullback, but that pullback should be a nice buying opportunity as the stock market has been an absolute beast after bottoming near the 200 Week EMA.
Now that the tariffs shock has been turned around, I think that there is still some concerns for tariffs causing chaos, and that is the one thing that I would be worried about. There is a tariff deadline of July 9, but we’ve recently seen some White House officials suggest that that is only a “guideline.” In other words, it’s very possible that the tariff situation will go on much longer than previously thought. Because of this, Wall Street will of course celebrate the idea of a market that is “business as usual”, and of course it’s possible that NASDAQ 100 traders will be paying close attention to artificial intelligence.
July Could Be Noisy, but I Believe It Will Be Bullish
July very well could be noisy, because we have bounced incredibly quickly, and we are getting a bit stretched at the end of the month of June. However, I think there is a massive “floor in the market” just above the 21,000 level, so I believe as long as we can stay above that level, there will be value hunters out there willing to get involved in trying to take advantage of “cheap contracts” in the NASDAQ 100. If we break down below the 21,000 level, then you have to start to ask questions of the 20,000 level, and perhaps even the overall uptrend. I don’t see this happening, but there are always external factors that could come into the picture causing quite a bit of trouble. The Middle East flaring up again and of course tariffs being delivered to certain countries could be that very catalyst.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
