The tech index, Nasdaq100, correctly lately, especially during the month of February. However, once February ended, Nasdaq100 recovered steadily. First, it formed a triple bottom pattern. Second, the move higher resembles the second part of an inverse head and shoulders pattern, and the market now prepares to move above the neckline.
A lot is at stake at today’s Fed meeting. The dots plot is the most important part of today’s event, as the market participants will interpret the Fed’s stance. An accommodative stance would be bullish for stocks, and that would be signaled if the Fed does not hint at any hike until 2023 including. On the other hand, if the Fed signals a hike or two until 2023, that would be interpreted as slightly hawkish, and the stock market may turn South.
The stock market indices remain well bid ahead of the event, with both the Dow Jones and the S&P500 staying close to all-time highs.
For the Nasdaq 100 index, the key is to break above the neckline and close the day there. On such a move, traders would focus on the index reaching a new all-time high because the measured move of the pattern signals 14,400 or more. Therefore, bulls may want to go long on a close above 13,500 with a stop at 12,700 and a take profit at 14,400 or above.
