As Adam points out, the NASDAQ index is on pace for its 8 consecutive day to the upside. Today, the index is up nearly 1% and traits currently at 13648.41.
Technically, the recent upward momentum has pushed the price of the Nasdaq index above its 100-day moving average, which currently stands at 13617.05.
It’s worth noting that on October 11, the price managed to break and close above this moving average after dipping below it on September 21. However, the very next day, the price slipped back below the moving average and remained there until it hit a low point of 12543.86 on October 26. Since then, there has been a rebound of approximately 8.9%.
The key question now is whether the price can maintain its position above the moving average. Additionally, the next target for buyers to watch for is the high price from October, which is at 13714.14, and achieving this level would provide further confidence to buyers in the market.
The broader S&P remains below its 100-day moving average of 4402.74 (see the blue line on the chart below). Its high price reached 4385.15 so far today. It is currently up around 13.5 points or 0.32% at 4380. The S&P index has not been above its 100-day moving average since gapping lower on September 21. Needless to say that level will be a key barometer for both buyers and sellers going forward.
This article was written by Greg Michalowski at www.forexlive.com. Source