The United States’ technology index, NASDAQ has been breaking into record highs for six consecutive days as better than expected earnings from technology companies in the first quarter of 2017, continue to pull investors to growth stocks. The tech-heavy benchmark ended the day on Monday 0.7 percent higher with another record closing at 6091.6. Compared to that the US benchmark stock index S&P 500 has failed to break above 2400.98, the high that was reached on the 1st of March. With regard to S&P 500, investors remained concerned about US economic growth, Trump tax plan pass through congress, and geopolitical uncertainties. NASDAQ is up 13 percent this year so far.
Similar performance was mirrored in NASDAQ 100. It also had a record closing on Monday at 5634.4 and we suspect that the rally is not going to stop here. According to our calculations, both NASDAQ and NASDAQ 100 have more juice left to move higher by at least 200 points. Since bottoming around 3860, back in February 2016, the index has been not only rising but accelerating the pace of the rise. The chart shows the acceleration.
We at FxWirePro, expects NASDAQ100 to reach 5840 area and then test resistance around 5900 area.
