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Nasdaq 100 Index Hits New High On Dovish FOMC Minutes

nasdaq 100
nasdaq 100

The Nasdaq 100 index pushed to record highs as the risk-sensitive index responded positively to the FOMC minutes, which indicated hesitancy on the part of policymakers to initiate early tapering. 

According to the FOMC minutes, the committee’s standard of “substantial further progress” appears not to have been met by current inflation and employment data, according to coverage of the FOMC minutes release provided by Reuters. However, the minutes showed that the policymakers were ready to take action if the inflation risk parameters manifested.

The language of the FOMC minutes was effectively dovish, allowing the risk-sensitive assets to extend their gains while halting the progress of the US Dollar. As such, the Nasdaq 100 index closed the day at 14822.0, having touched off new highs at 14896.2 earlier in the session.

Technical Levels to Watch

The Nasdaq 100 index is now testing resistance at the junction between the channel’s upper border and the 14827.8 mark formed by the 100% Fibonacci extension from the 4 March – 16 April price swing. Further advance may bring the index towards 15331.6 (127.2% Fibo extension) and 15594.6 (141.4% Fibonacci extension). 

On the other hand, a profit-taking-induced correction may permit 14616.7 and 14431.5 to become available, with 14120.4 also coming into the picture if the correction is more extensive.

Nasdaq 100 Index: Daily Chart

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