- Summary:
- Nasdaq100 gets ready for a new attempt to 14,000 after it got rejected the first time it tried. The tech index remains bid on every dip.
The pandemic brought impressive strength to the Nasdaq100 index. The tech sector index benefited from the change in consumer behavior and remote working and was the first major index to reverse initial losses generated by the pandemic.
Starting with the end of February, the tech sector diverged from other indices. For example, while the Nasdaq100 index failed at 14,000 and dropped almost to 12,000, the Dow Jones kept making new all-time highs. On the other hand, when the Nasdaq100 was making all-time highs in the last months, the Dow Jones and the S&P500 indices lacked momentum.
Nasdaq100 remains bid. America deployed $1.9 trillion in a new round of fiscal stimulus, and it is about to spend some more on long-term projects. It is estimated that above 20%-30% of the stimulus released so far this year will end up in the stock market, so the indices should remain bid on every dip.
Nasdaq100 Technical Analysis
This is precisely what happened to the Nasdaq100. While the move lower to 12,200 was abrupt and scared some investors, others decided to buy the dip. Therefore, the market bounced and formed what appears to be an inverse head and shoulders pattern.
Bulls may want to wait for the Nasdaq100 index to close above the neckline before going long. On such a move, bulls should remain on the long side with a stop at the previous higher low and targeting a new all-time high at 14,000 and beyond.
Nasdaq100 Price Forecast
