Thursday's Market Minute: Nasdaq Rising Above Resistance On Sluggish Momentum

Nasdaq-100 futures are on the move in the premarket session as the /NQ pushes above two resistance points many traders have likely been eyeing. The first is the 12,900 mark, which is around where price has topped out several times during the past year, while the second is the upper trendline of a Rising Wedge-type pattern beginning with the highs from early February near 12,950. 

However, it may not be party time for tech bulls just yet, as the Relative Strength Index (also known as RSI, a measure of momentum) is trending downward as price makes new relative closing highs above those from February. This is known as Bearish Divergence, and this could be a potential warning sign that the move upward may not be as strong as the bulls wish.

If the move upward has some legs, one potential spot to watch for resistance is the old closing high from late August near 13,145. Beyond that, the peak near 13,700 is another area to watch. For possible support, watch if price holds the previously mentioned 12,900 line, while the 21-day Exponential Moving Average near 12,615 could be a stalling point if tech moves lower.

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