The cryptocurrency market had a rough weekend. Most of the coins dropped significantly, with Bitcoin leading the way, down over 15% in a mini flash-crash. However, the Nasdaq100, the tech index, remains well bid and hovers close to the highs.
The earnings season in the United States started with strong results. As expected, the U.S. corporations that reported so far their Q1 2021 earnings have beaten expectations by a mile.
In a way, it makes sense because of the fiscal stimulus received by households and the gradual reopening of the U.S. economy. Also, the trend lower in the dollar helps to fuel the equity markets rally. Not only the Nasdaq100 is close to all-time highs, but so are its peers – Dow Jones or the S&P500 index.
Nasdaq100 Technical Analysis
From a technical perspective, the Nasdaq100 index remains bullish. On the one hand, it managed to reach a new all-time high. Higher highs are part of bullish trends, so we cannot ignore its ability to make a new how. On the other hand, the recent rally started after a triangle as a reversal pattern broke higher. Such a triangle is typically forming at the end of complex corrections, suggesting the new move higher is part of a bigger cycle.
Bulls may want to stay on the long side with a stop below the lower edge of the rising channel and a target that respects the 1:2 risk-reward ratio.