• The mega-cap tech Nasdaq 100 resumed its daily outperformance over the S&P 500, DJIA, and Russell 2000.
• It closed at a 15-month high.
• 14,540 is the key short-term support to watch.

Fig 1: US Nas 100 medium-term trend as of 13 Jun 2023 (Source: TradingView, click to enlarge chart)

Fig 2: US Nas 100 short-term trend as of 13 Jun 2023 (Source: TradingView, click to enlarge chart)

Once again, the bullish tone of the Nasdaq 100 which is heavily concentrated in the mega-cap technology-related stocks such as Microsoft, Apple, Amazon, and NVIDIA resumed its outperformance yesterday, 12 June with a daily gain of +1.76% over the rest of the US benchmark indices; S&P 500 (+0.93%), Dow Jones Industrial Average (+0.56%), and Russell 2000 (+0.40%).

From a technical analysis perspective, momentum remains positive at least in the short-term.

Squeezed up and ended yesterday’s session with a daily bullish “Marubozu”

Price actions of the US Nas 100 (a proxy for the Nasdaq 100 futures) have managed to stage a breakout above the upper boundary of an impending “Ascending Wedge” that now turns into a near-term pull-back support at 14,540. Ended yesterday’s session, (12 June) with a daily bullish “Marubozu” candlestick pattern which suggests that the bullish camp controlled the price of the Index from the opening to the close of the day.

Short-term momentum remains positive

In the shorter-term horizon, as depicted on the 1-hour chart, the price actions of the Index have evolved within a minor ascending channel since the 24 May 2023 low of 13,526. In addition, the 1-hour RSI oscillator has just inched up into its overbought zone (above 70%) yesterday but without any bearish divergence signal yet. These observations suggest that short-term upside momentum remains intact.

14,540 key short-term pivotal support to maintain the bullish tone with next intermediate resistances coming in at 15,100 and 15,270; defined by a confluence of elements (the medium swing high areas of 2 February/29 March 2022, the upper boundary of the minor ascending channel & a Fibonacci retracement/extension cluster).

On the flip side, failure to hold above 14,540 exposes the next support at 14,220 (also the 20-day moving average).

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Based in Singapore, Kelvin Wong is a well-established senior global macro strategist with over 15 years of experience trading and providing market research on foreign exchange, stock markets, and commodities. Passionate about connecting the dots in the financial markets and sharing perspectives around trading and investment, Kelvin Wong is an expert in using a unique combination of fundamental and technical analyses, specializing in Elliott Wave and fund flow positioning, to pinpoint key reversal levels in the financial markets. In addition, over the last ten years, Kelvin has conducted numerous market outlook and trading-related seminars, as well as technical analysis training courses, for thousands of retail traders.

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• Source: https://www.marketpulse.com/indices/nasdaq-100-technical-squeezed-up-ahead-of-cpi-and-fomc/kwong