• The Nasdaq 100 has been on an upward trajectory for the past few weeks, but Tuesday's session appears to be relatively calm.
• Despite this, it's important to note that whenever there's a minor pullback, there are investors eagerly looking to seize opportunities and find value in the market.

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As we observed in the early hours of Tuesday, the Nasdaq 100 was trading at its recent highs. It wouldn't be surprising if the market experiences a slight retreat from this point, but such a dip is likely to be seen as a chance for investors to buy in.

Looking ahead, the market is awaiting the Federal Open Market Committee (FOMC) statement and decision scheduled for Wednesday. The outcome of this event has the potential to significantly impact the market, though some might question whether the Federal Reserve will take actions that could surprise investors. Many believe that the Federal Reserve has been closely aligned with the interests of Wall Street.

Caution May Prevail

In this environment, caution may prevail, but the prevailing sentiment still leans toward buying on the dip. The 16,950 level holds significance as a major support level, having previously served as resistance. Additionally, there are expectations that the Federal Reserve may implement multiple rate cuts in 2024. However, it's essential to recognize that market movements are rarely a straight upward climb. The anticipated pullback could indeed present an attractive opportunity, especially considering the 50-day Exponential Moving Average (EMA) is converging in the same vicinity.

In general, the Nasdaq 100 is expected to continue its ascent toward the 18,000 level. It's worth noting that this index is heavily influenced by a small number of widely held stocks, often referred to as the "Nasdaq 7." Consequently, the market is often perceived as a one-way trade, where patience is key in waiting for favorable entry points.

Following the FOMC press conference on Wednesday, the market may react with volatility. However, the overall consensus points toward a continued upward trajectory, and any sell-offs should be viewed as opportunities for those looking to capitalize on potential gains in this massive bullish run that we have seen. The market will continue to be influenced by just a handful of companies and of course, the massive money flowing into “passive investing.”

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