The Nasdaq 100 index touched off new highs today after testimony from the Fed Chair Jerome Powell indicates that the apex bank is not ready to start tapering the QE program any time soon. Powell said that the US economy was “a long ways off,” doubling down on the Fed’s position since the 16 June FOMC meeting’s hawkish statement.
In responding to questions from reporters after the semiannual Monetary Policy Report to the US House Committee on Financial Services, Powell said that inflation was “well above 2%” and that long term rates were difficult to predict.
The US Markets largely cheered the decision, allowing the Nasdaq 100 index to rise 0.22% on the day and set a new high in the process.
Technical Outlook for Nasdaq 100
The daily candle found support at the 14827 price mark (100% Fibonacci extension), while meeting resistance at 15009.
A break of the resistance level opens the door for potential attainment of the 15331.6 price level (127.2% Fibonacci extension), while 15594 (141.4% Fibo extension) remains an upside target for the future.
On the flip side, a breakdown of the support at 14827 allows the Nasdaq 100 to aim for the 14616 price mark (88.6% Fibonacci extension mark), with 14431 and 14078 (29 April high/22 June low) serving as additional downside targets.