The E-mini Nasdaq 100 recently broke through the April high, leading the others indexes higher as has been the case in recent years and our analysts say it is all about tech companies.
Jeffrey Friedman, senior market strategist at Lind Waldock, says a number of factors have propelled the Nasdaq 100 E-mini through the April resistance level. "The tech industry is doing a lot better than the general economy. What you have is quantitative easing, weak dollar and global presence – that is a lot of the tech companies are more global so they are not feeling the crunch in America as much," he says. Looking forward, the biggest fundamentals traders need to watch are the elections, as those results will affect taxes, and the looming holiday season. The next resistance level is at 2250, the high set in October and November 2007. Friedman expects to see a pullback to 1800, but warns that if the Republicans take Congress the index could go much higher.