Nasdaq: Weekly Forecast 20210620

Nasdaq managed to break a new high last week as it reached the top of a rising wedge.

While Nasdaq was able to remain somewhat bullish, both Dowjones and S&P500 ended the week in a loss, especially the Dowjones which shed off 3.7%, the biggest weekly loss in 8 months.

It is fundamentally reasonable for the stock market to come off the top as the Fed signals for earlier tightening of monetary policy which ultimately means a reduction for "hot money".

As such, we expect Nasdaq to follow suit and therefore we will be looking for selling opportunities this week at the top of the rising wedge, targeting at 13800 and 13500.