Nasdaq Composite volume hits July peak as signs of selling pressure emerge

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Sholanke Dele

22.07.2025

Nasdaq Composite volume hits July peak as signs of selling pressure emerge — Nasdaq rose for a seventh day

The Nasdaq Composite Index continues its impressive earnings-season climb, closing Monday with its seventh straight daily gain.

Monday’s session opened strongly, surging 0.57% intraday to a new high at 21,077, backed by the highest daily volume recorded in July so far. However, the index retreated into the close, ending the day at 20,975 for a modest net gain of 0.08%. This retracement printed an Inverted Hammer candlestick on the daily chart, a pattern that suggests growing selling pressure even as prices trend higher.

- Nasdaq rose for a seventh day but closed below session high at 20,975

- RSI climbed to 75 showing aggressive buying ahead of major earnings

- An Inverted Hammer pattern warns of cooling momentum after record volume

Although traditionally seen as a signal for potential reversal, the Inverted Hammer alone does not confirm a trend shift. Throughout this ongoing seven-day rally, there have been intermittent profit-taking moves, but the broader uptrend has held.

Nasdaq price dynamic (June - July 2025). Source: Tradingview

The combination of consistent daily gains and Monday’s elevated volume suggests that institutional participation is growing, and that there could be more room for upside if earnings momentum continues.

Technically, the RSI has entered deeper into overbought territory, rising to 75 on Tuesday from 73 the previous day. This shows aggressive buying and a sustained bullish stance, although it raises questions about whether a short-term cooling-off phase might follow. Even so, strong earnings and optimism around economic resilience are reinforcing market sentiment.

Nasdaq faces short-term test today ahead of Lockheed and Coca-Cola earnings report

Investor attention is now shifting to upcoming earnings reports from defense firms such as Lockheed Martin and RTX, as well as major consumer brands Coca-Cola and Philip Morris International. These reports, due before Tuesday’s opening bell, could either fuel a continuation of the Nasdaq rally or trigger a correction if results disappoint.

Fundamentally, the market has responded well to solid earnings and signs of steady economic activity, brushing aside uncertainty from President Donald Trump's changing tariff stance. If today's earnings come in strong, the Nasdaq may extend its climb and set a new all-time high.

On the other hand, weaker-than-expected results could reinforce the Inverted Hammer signal from Monday, possibly flipping this week’s gain into a loss and erasing part of last week’s advance. For now, momentum and investor sentiment remain aligned to the upside, but price action during today’s session will be decisive for short-term trend confirmation.

Nasdaq Composite rose on strong investor demand ahead of Tesla and Alphabet earnings. It touched a record high at 20,980 before retracing slightly on Friday.

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