Nasdaq 100: Key resistance at 13380/420 to cap for a phase of corrective weakness – Credit Suisse

Nasdaq 100 has recovered from its early weakness. Economists at Credit Suisse look for price and 63-day average resistance at 13380/420 to ideally cap for a move to test potential trend support, today at 12970.

13380/420 to cap strength

“A rollercoaster session for the Nasdaq as the market recovers sharply from its early weakness. Despite this though the index remains below price and now falling 63-day average resistance at 13380/420 and we look for this to cap strength and for the risk to turn lower again from here.” 

“Support moves to 13360 initially, then 13260/55, below which should see a move back to the 13095 low of yesterday ahead of potential trend support at 12970, with the late March low seen at 12630.” 

“Above 13420 can see a deeper recovery to test recent gap resistance at 13650/70, but with this ideally capping to keep the immediate risk lower. Above 13815 though remains needed to reassert an upward bias.”