Nasdaq100 managed an impressive reversal from February’s lows. It has formed an inversed head and shoulders pattern, and the market recently broke the neckline’s resistance. Since then, it formed two continuation patterns with little or no retracement in between, suggesting that it will try for the measured move in the days to come.
Later today, we will find out the FOMC Minutes from the meeting that took place six weeks ago. Remember that the Fed remained accommodative despite the economy improved significantly. As such, the minutes may reinforce the Fed’s dovish bias and push stocks even higher.
Last Friday, the NFP report showed that the U.S. economy added almost a million new jobs in March. Moreover, the previous months’ data was revised higher, suggesting a strong economic comeback. As such, the stock market indices remain bid, as an accommodative Fed and a strong economic recovery indicate stronger earnings down the road.
The Nasdaq100 technical picture suggests an attempt to a new all-time high is in the cards. The measured move of the inverse head and shoulders pattern points to 14,200, and the FOMC minutes later in the North American session may be just the reason to move the market. Bulls may want to remain long for the measured move, with a stop at the previous higher low.
