Thursday's Market Minute: Can Tech Continue Its Takeoff?

Nasdaq futures have been the standout so far this week, as the tech-heavy index soared more than 3% on Monday. The /NQ made new 20-day highs to push above the 12,000 level and also finished the day with a strong close above the upper Bollinger Band, which is typically regarded as bullish. However, prices have stalled since this upward burst, leaving traders to assess new points of support and resistance. One key area to note is the previous resistance near 11,540 that held for much of September and early October, which now could be viewed as a support area because prices have broken through this level. Other potentially important price levels to the downside include the 21-day Exponential Moving Average near 11,534 and the yearly Linear Regression Line, often used to help assess fair value, near 11,335. If prices continue to advance, watch for some congestion around the Volume Nodes close to 12,000 and 12,160. If a rally manages to pierce above August’s all-time highs, prices could halt near the Linear Regression 50% Channel’s upper line at about 12,474.