Breaking: Nasdaq (NDX) and QQQ set new records, technical levels to watch
Finally, the Nasdaq catches up with the broader market indices and posts a new record high. At the time of writing, the Nasdaq is trading at 13,946 breaking the previous high of 13,879 from way back on February 16!
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Nasdaq technical levels
Once the market broke out and stayed above the upper channel resistance at 13,319, a move to test new highs was on the cards. Further support to the bullish trend is evidenced by the short-term moving averages being broken above back in early April. The Nasdaq has stayed above the 9 and 21-day moving averages. These will be the first support levels should anything change and the market turn lower. A break below would see the channel support at 13,319 being the next target support and below that the 50-day moving average will provide the next comfort level.
The bullish trend would be questioned on a break of the 50-day moving average but would not be confirmed until the previous low from early March at 12,209 is broken. This would end the series of bullish higher lows and highs.
For now, MACD confirmation remains in place for longs. RSI is getting close to overbought territory but this lagging indicator can trend lower even if the market remains elevated. It needs to be watched but is not to be acted on in isolation as no one indicator can determine future price action.
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
