nasdaq 100 index

Nasdaq 100 Capped Around 12,000: Has the Uptrend Peaked?

The Nasdaq 100 index broke the pattern of the other US markets and is trading higher this Friday, albeit on low trading volumes. Friday marked a thin day of macroeconomic data, allowing prevailing sentiment around the biotech-heavy Nasdaq 100 to play out. 

The Nasdaq 100 found its upside action capped on the day when Treasury Secretary clarified Thursday’s decision to end several loan programs and demanded that the Fed refund $450billion put up for the process. Treasury Secretary Steve Mnuchin says that under a new reform program, the Fed would now require permission from his office before initiating such emergency programs. 

Technical Outlook for Nasdaq 100

The progressively lower highs seen on the daily chart of the Nasdaq 100 index is a pointer that further uptrend in the short-term may have stalled. The reluctance of Friday’s daily candle (and indeed, that of Wednesday and Thursday) to break above the 12003.6 resistance could cement this position. This may open the door for a further pullback which challenges 11820.4. A breakdown of this level could provoke a swing move towards the triangle’s lower border, taking out 11608.5 along with it. A breakdown of the triangle’s lower edge around 11176.3 opens the gates wide for a long-term retreat towards 10866.5 and possibly 10760.8 and 10505.4. 

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On the flip side, a continuation of the uptrend requires a breakout move that takes the Nasdaq 100 above 12163.4. There is a chance at achieving the all-time high at 12467.8. This move would also fulfil the technical expectation of the price pattern, which should lead to price continuation above the symmetrical triangle (80% of the time).

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Nasdaq 100 Daily Chart

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