Nasdaq Technical Analysis – 14,400 Possible

The Nasdaq is making solid gains as traders move into meme and tech stocks due to the belief that they think the Fed will not be as aggressive going forward in terms of rate hikes.

Last week the Nasdaq rallied to its highest level since May this year as traders appeared to jump on the technical break past the 13,000-resistance level. The 14,000 level is the next major target ahead.

Interestingly, the trend will turn bullish for the Nasdaq if the price moves past the 14,000 level. This means that the price will have moved above the index’s 200-day moving average.

This week traders would like to buy more aggressively, even than last week, if the US CPI report comes in weaker than expected. Peaked inflation is a powerful concept for the market.

I would suggest keeping a close eye on the 13,400 to 13,000 level this week. A breach of this range will likely cause the next 200 point move higher. Interesting time ahead.

Traders sentiment towards the Nasdaq is still bearish. This is not very encouraging for the current recovery, as the retail crowd is typically on the wrong side of the trade when new trends emerge.

I think we could see the Nasdaq bearish bias starting to continue towards the leading US Tech index over the coming days and weeks as traders disbelieve the current rally.