The Nasdaq 100 index consolidates on the horizontal while the Dow Jones comes back close to all-time highs. The tech index did not have a positive reaction to the prospective of good vaccine news. In fact, it looks like it formed a double top at the 12,400 and has a hard time moving higher.
So far in the trading week, the price action surrounding the U.S. equities is extremely bullish. President Trump signaled that transition can take place and Janet Yellen, the former Fed Chairwoman, was nominated as the new Treasury Secretary under the Biden administration.
The nomination was cheered by financial markets – yet no reaction from the Nasdaq 100. The inactivity of the index at the current levels makes it susceptible to a bearish break rather than a bullish continuation.
The technical analysis picture shows an index that hesitates at the highs. However, so far, the higher lows series remains in place, so the overall bullish perspective may continue.
Therefore, bears may want to wait for a break below the blue trendline before going short. If that is not happening, the chances are that the bullish conditions will dominate toward the end of the trading year.
