The NASDAQ index is leading the way to the upside with a new session high being reached at 11903.28. The current prices trading at11902.993 up 189 points or 1.62%. The NASDAQ index is up 4 of the last 5 trading days.
Meanwhile the S&P is up 28.74 points or 0.73% at 3965.35. The Dow industrial average is up 63 points or 0.20% at 31891
Looking at the daily chart above, the price has filled the gap from the June 9 to June 10 trading day (above 11754.24). Recall from yesterday, the price moved above swing highs from June 27 and July 8 at 11677.49 and 11689.70 respectively.
Both breaks are bullish developments, but there is work to do to give the buyers more confidence and control.
The 38.2% retracement of the move down from the March high comes in at 12124.37 and represents the next key target on the topside. Above that the June high at 12320.12 and the falling 100 day moving average at 12454.96 would be targeted.
Looking back at the March 29 high, the price tested that key 100 day moving average and found willing sellers. That gave the sellers the g-ahead to push lower and eventually led to the run lower to the June low at 10565.14.
The NASDAQ has not closed above its 100 day moving average since January 4, 2022. Getting above that level is key to shift the longer term bias more to the upside. However, like in March, I would expect willing sellers to line up against that MA if tested, with stops on a break above.
