The Nasdaq-100 Technology Index (#NDX) is trading at 12,983 above the 21 SMA and below the strong resistance of 6/8 Murray. Since July 13, the NASDAQ-100 maintains a strong bullish trend that could be showing signs of exhaustion due to the negative divergence observed in the eagle indicator.
Wall Street futures are trading higher, with the S&P gaining 0.65% and the Nasdaq 1.44%. The uptrend is likely to continue due to positive sentiment and risk appetite. However, a technical correction could occur as the index is overbought and it could fall towards the bottom of the uptrend channel at around 12,800.
According to the 4-hour chart, the Nasdaq-100 remains in a strong uptrend. But the NDX has a strong barrier because there is strong resistance at 13,125 (6/8) -13,200 (weekly resistance). In case there is a pullback towards this area, it is likely that there will be a technical correction and the index could go back and fall towards 4/8 Murray at around 12,500.
Our trading plan for the next few hours is to buy above the 21 SMA located at 12,906, or wait for a pullback to sell at around 6/8 Murray. In the event it consolidates below this level at around 13,150- 13,200, it will be a signal to sell with targets at 12,812 (5/8 Murray) and 12,550.