Nasdaq – a step away from all-time highs.
Monday and risk-on mood again during Asian session as markets observe Nikkei rally to start the week. Asian markets are up-beat but US index futures trading flat and this should keep us cautious, especially as Treasury yields a bit heavy.
So, we are likely to get more directions towards US market opening and risk sentiment will be established as more corporate earnings headlines released.
Positive earnings season headlines, China stimulus, Fed narrative and US-China talks all keep the markets up and we are just a step away from all-time highs. How and when it will be materialized is yet be seen.
Technically, 4-hour chart is stretched and I generally think some slight correction towards 7580 and even 7480 is possible today or tomorrow. But does it mean that we take short trade ? For risky traders is an opportunity, however, I would refrain from shorting stocks in today’s strong trend market.
As I expect, price will like to gravitate towards 7580 and this is where I would like to place my first buy limit order and adding to my exposure with the next entry at 7480 support cluster. We will take clue from the further price action but as of today, market is bullish and we follow the lead.
Have a nice week !