Breakout Test in Play for Tech, Says Joe Friday
Chris Kimble | May 20, 2023 05:47
Since stocks bottomed last October, the rally has been led by the technology sector. And tech indices like the Nasdaq 100 and Nasdaq Composite have posted solid gains.
For an even better indication of the health of a major index, we can turn to its “equal weighted” index. And today we do just that by looking at the Equal Weighted Nasdaq 100 Index.
“The facts, Ma’am. Just the facts.” – Joe Friday
As you can see in the weekly chart, the Equal Weighted Nasdaq 100 Index has formed a bullish ascending triangle at its 50 percent Fibonacci retracement level. Price has bumped up against this level 3 times (strong resistance) and is hitting it again this week at (1).
The triangle is narrowing so something is going to give soon! Note that a breakout would produce an initial target of $109 on the EQ Nasdaq 100.
A breakout would also send a bullish message to the tech sector and likely lead the broader market higher. Seems like an important chart to watch.
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