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“Danger Ahead! Is the Nasdaq 100 Facing a Pullback?

The Nasdaq 100, a stock market index comprising the largest 100 non-financial companies listed on the Nasdaq stock exchange, has been trading at record highs for the past couple of weeks. Investors have been pouring money into the index, pushing it to a new all-time high of 11,688.30 on July 22nd. However, it seems that the rally may soon be coming to an end, as analysts and investors are predicting that the index is about to pullback. The strong fundamentals that have been driving the Nasdaq 100 higher are likely to give way to profit taking and a reversal of the recent uptrend. Technical analysts are also seeing signs that a pullback is imminent. On the daily chart, the index broke through a resistance level of 11,600 to form a new all-time high. The daily chart also shows that the index has formed an ascending triangle pattern, which is a trend reversal pattern. The apex of this triangle will be reached in the coming days, possibly signaling the start of a pullback. It’s likely that this pullback will be short-lived, as the fundamentals that have been driving the Nasdaq 100 higher are still strong. Nasdaq-listed companies have reported better-than-expected earnings and are expected to continue to outperform in the coming months. Nevertheless, investors should be aware that a pullback is imminent and should take necessary steps to protect their investments. They should consider reducing their exposure to the Nasdaq 100, either by taking profits or by shorting the index. This will ensure that they don’t miss out on any upside potential when the index begins to rebound. All things considered, the Nasdaq 100 is expected to pullback in the coming weeks, signaling a reversal of the recent uptrend. While the pullback is likely to be short-lived, investors should still take the necessary steps to protect their investments.