Caution: Trading involves the possibility of financial loss. Only trade with money that you are prepared to lose, you must recognise that for factors outside your control you may lose all of the money in your trading account. Many forex brokers also hold you liable for losses that exceed your trading capital. So you may stand to lose more money than is in your account. HowToTrade.com does not guarantee the profitability of trades executed on its systems. We have no knowledge on the level of money you are trading with or the level of risk you are taking with each trade. You must make your own financial decisions, we take no responsibility for money made or lost as a result of using our servers or advice on forex related products on this website.
Don’t Miss Out!
There's 754 Participants ready for the competition starting in:Learn More
There's 754 Participants ready for the competition starting in: Learn More

Rampant NASDAQ To Close Above Milestone 20,000? – NASDAQ Analysis & Prediction

  • 2 mins read ●
  • Published:
nasdaq market analysis 3

Key Points

  • NASDAQ breached milestone 20,000. 
  • Rate cuts being pushed back.
  • NVIDIA dips 3%.
  • Is this the top for the NASDAQ?

Market Overview 

The NASDAQ snapped an 8-day winning streak yesterday after briefly trading above a record high of 20,000. After two failed attempts to reach this milestone, the NASDAQ finally breached it during yesterday’s Asia session. However, as the US session came to life, the NASDAQ dropped 300 points. This is most likely down to profit-taking.

Rather than calling this the top of the market, traders will now wonder where the next “buy the dip” opportunity comes from and who can blame them. The NASDAQ has been rampant so far this year despite a more hawkish stance from the Federal Reserve than most expected. Is there anything that can stop the bulls?

Rate Cuts Are Being Pushed Back

According to the CME FedWatch tool, there is now a 90% chance that the Federal Reserve will keep interest rates where they are in the upcoming July meeting. This is after some hawkish comments from Jerome Powell in last week’s conference. The markets now believe the Federal Reserve will only cut once this year; however, if you check the percentages, nothing is set in stone.

This emphasizes the data coming out before the meetings, such as today’s PMI data. The services and manufacturing PMI in the US are in expansive territory, meaning the sectors are growing. Unless the figures come in extremely weak, i.e., both below 50, it is hard to imagine the NASDAQ falling when they are released. We could, therefore, be in for a bullish close today.

NVIDIA Dips 3%

Much of the NASDAQ’s gains this year can be attributed to the buzz surrounding AI. No one has felt this more than NVIDIA, whose stock price has been defying logic with its gains. At the time of writing this article, the stock price is up 177% YTD.

NVIDIA 1D Chart – 21/06/2024

NVIDIA was the most valuable company in the world this week, but only briefly. Yesterday, the stock price fell 3% and is approaching a Fair Value Gap. Traders may use this as an opportunity to buy the stock once more. 

Is This NASDAQ Top?

Due to NVIDIA’s weighting in the NASDAQ, the tech index also fell quite aggressively from the 20,000 mark and was down 300 points at one point yesterday. The price has since rebounded but remains under pressure.

NASDAQ 4H Chart – 21/06/2024

Looking at the current market structure, it would be brave to call 20,000 the “top of the NASDAQ.” This looks like a classic bout of profit-taking at a huge milestone figure, so there is no need to panic. Furthermore, the price ran into an H4 order block and reacted twice. Traders may look for the sell-side liquidity to be taken at the equal lows within the order block to send the NASDAQ back to 20,000 once more. 


Risk Disclosure: The information provided in this article is not intended to give financial advice, recommend investments, guarantee profits, or shield you from losses. Our content is only for informational purposes and to help you understand the risks and complexity of these markets by providing objective analysis. Before trading, carefully consider your experience, financial goals, and risk tolerance. Trading involves significant potential for financial loss and isn't suitable for everyone.

Trade Like a Predator Hunt for Opportunities

Sign up now for FREE access to our exclusive trading strategy videos. Want more? Explore our Trade Together program for live streams, expert coaching and much more.

Here’s what you’ll get:

Identifying high probability scalping setups
When to scalp and when to stay out
Precise entries and exits
Position sizing and risk management
HTT Piranha Strategy Course thumbnail
By clicking the 'Learn Free Now' button you agree to our Terms of Service and Privacy Policy
HTT Connor, arms crossed

In partnership with our recommended partner SwitchMarkets partnering broker logo

Wait!

1Register with Switch Markets.
2Verify your identity.
3Unlock Trade Together program for free!
Learn More

"Join our Trade Together program and interact with us in real-time as we trade the markets together."

HowToTrade Coaches