NASDAQ 100 (US100) – Week 8 – New top or bearish pullback?

Nasdaq slid from the record highs registered last week on concerns over a possible spike in inflation, while the rise in Treasury yields continued, adding fuel for an economic recovery backed by the stimulus program and the vaccine campaign. Tech stocks are particularly sensitive to rising yields since their value depends heavily on future earnings, which are discounted massively when bond returns go up.
From a technical perspective, the US100 drop has been rejected around the major support area located around 12700.0 level. We now aim for the price to continue its rise at least until the resistance zone highlighted on the chart. This could act as a correction and we could see the price dropping again, but we also have a big possibility to break that resistance zone and make a new high, even reaching the 14000.0 psychological level. The price action could be an important factor that can guide us in the right direction of the market.
PS. Check out below in the related post section, our previous NASDAQ analysis in which we forecasted the last bearish impulse.
Trade with care.

Best regards,
Financial Flagship

Disclaimer: The analysis provided is purely informative and it should not be used as financial advice. Remember that you need a plan before you start trading; so, take this knowledge and use it as a guidebook that will ultimately help you understand the market and easily predict your next move

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It seems that the bearish scenario is still in play. If the price pulls back here that could be the confirmation that we are going to head south. Trade with care.