The Nasdaq 100 #NDX yesterday hit February 17 highs around 13,844, and the SPX 500 hit new highs after the Federal Reserve underscored its commitment to maintaining a super flexible strategy, even though the economy is enjoying a rapid recovery.
Today Friday the Nasdaq, #NDX has a loss of 0.19% at the time of writing, since it is likely that because it is a weekend there will be a correction of the 4-day upward movement that has accumulated.
The minutes of the last monetary policy meeting of the Federal Reserve showed that its members consider that the economy is still far from its target and are not in a hurry to reduce their purchase of bonds worth 120,000 million dollars a month.
This may give the Nasdaq more bullish momentum, which we saw has assimilated this data in its favor, technically we expect a correction before a new bullish momentum.
In the 1-hour chart, you can see that the Nasdaq, forming a pattern shoulder, head, shoulder, and above the right shoulder is located the SMA of 21 exerting pressure, a break below 13,650, this pattern would be confirmed.
The objective can be located at 7/8 of Murray located in 13,593 and lower in 6/8 of Murray in 13,437, for which we must expect a consolidation below 13,700.
Our recommendation is to sell below 13,685 or if there is a pullback towards the 13,775 area, as long as it does not exceed the 21 SMA there is a possibility of a downward correction.
Support And Resistance Levels For April 09 - 12, 2021
Resistance (1) 13,795
Resistance (2) 13,855
Resistance (3) 13,913
Support (1) 13,583
Support (2) 13,506
Support (3) 13,374