The Nasdaq is higher today, and trading near new highs. In the process, the index is extending above a cluster of resistance.
- The price is back above the 38.2% of the move up from the March 13 low at 13123
- The price is back above the 50 hour MA at 13166
- The price is back above a swing area between 13123 and 13161.
That cluster of resistance is now support in the short term. Staying above and traders will look toward the 100-hour MA (blue line in the chart below) at 13372 as the next major target. That MA corresponds roughly with swing highs going back to September 21, when the price gapped lower.
Conversely, move below the swing area, and the buying momentum should fade once again.
So buyers are making a play in the Nasdaq technically today. Can they now keep the momentum going?
Helping the Nasdaq index today is the fall in yields. The 10-year is down 6.7 basis points to 4.73% after trading as high at 4.88% earlier. The 30-year is down -8.8 basis points at 4.87% after tagging 5.01% at the highs and moving back down.
This article was written by Greg Michalowski at www.forexlive.com. Source