The Nasdaq 100 index hit new all-time highs at 14331 this Wednesday, after a resurgence in tech stocks. Also boosting the risk-sensitive Nasdaq 100 index is the comments by Fed Chair Jerome Powell during Tuesday’s testimony before the House Select Subcommittee on the Coronavirus Crisis. Powell downplayed the current inflationary pressures as being of a temporary nature.
Several other Fed officials have done the same, stressing how premature it would be for the Fed to act earlier than expected to tighten monetary policy.
These events have allowed the Nasdaq 100 to spring back from last week’s lows to trade at 14290, just short of today’s all-time high (ATH).
Technical Outlook for Nasdaq 100
The Nasdaq 100 continues to trade within the ascending channel and looks set to target the 14431 price level, the 78.6% Fibonacci extension of the price swing from 5 March to 15 April and back to the 12 May low. Above this level, potential price targets also lie at 14616 and 14827.
On the flip side, a rejection at 14431 allows for a pullback towards 14078/14120. Below this level, the 15 February high at 13904 and 13683 (22 April low) will constitute additional targets to the south.