The Nasdaq-100 index rose to around 14,888 as of July 13.
According to its new record high and other optimistic economic news, the Nasdaq-100 is expected to hold its bullish trend.
MarketWatch reported on July 12: “US stock indexes traded mixed on Monday morning, with the Nasdaq Composite Index establishing a fresh intraday record high near the session’s open, while the Dow Jones Industrial Average and S&P 500 were pulling back from their all-time highs.
“The Dow (DJIA), -0.31 per cent was down 0.2 per cent at 34,801, the S&P 500 (SPX), -0.35 per cent was down less than 0.1 per cent at 4,367, while the Nasdaq Composite (COMP), -0.38 per cent was up 0.3 per cent at 14,738, after touching a record intraday high at 14, 761.08.”
Meanwhile, according to Seeking Alpha: “The Nasdaq (COMP.IND) is the best performer among the major averages after a big rise in consumer inflation failed to push longer Treasury yields higher.”
Also, with investors paying close attention to earnings season, Federal Reserve Chairman Jerome Powell gave his semiannual testimony on the state of monetary policy to US Congress on Wednesday on Thursday.
“Concerns over global growth and the transitory nature of inflation has seen yields retreat from yearly highs. Continued downward pressure on yields has seen the Nasdaq-100 once again outperform the Dow Jones (growth over value), a trend that dominated US equity markets throughout 2020.
“However, strong earnings may potentially ease fears over any ‘impending’ economic slowdown, potentially reversing the recent move lower in yields and once again pushing cyclical stocks to outperform,” DailyFX stated.
DailyFX strategist Margaret Yang added: “The Nasdaq-100 index breached above a key resistance level at 14,000 through the end of June, which opened the door for further upside potential.
“The index had also completed a ‘Double Bottom’ pattern, signalling a possible bullish trend reversal.
“The formation of consecutive higher highs and higher lows on the weekly chart underpins bullish momentum, paving the way for repeated attempts at fresh record highs.”
For this week’s trading recommendation, investors should place an order to buy Nasdaq-100 at 14,870, setting a stop-loss function at 14,777 and a take-profit function at 15,000.