We last wrote about the Nasdaq-100 a couple of months ago as it was leading the indexes to levels approaching the 2007 pre-recession highs. Since then, momentum traders and a growing sense of optimism have carried it beyond levels last seen before the recession.
As the index approached and overtook that high, there was a growing sense of bullishness in the market. "[Taking out the 2007 high] was significant. The Nasdaq led the way when we took out those old highs in November and it is leading now," says Jeffery Friedman, senior market strategist at Lind-Waldock. He says the growing economy and recent tech wars between giants such as Google and Apple really have helped the market. Key indicators to watch are the U.S. dollar and the 10-year Treasury note. Friedman sees support at 1900 and if that is broken, then at 1750. Resistance is at 2200.
Paul Brittain, branch manager at Whitehall Investments, is even more optimistic. From a technical standpoint, he says it is just time the market turned around. "We just saw a 10-year cycle of the markets going sideways," he says. "We made our bottom, retraced the 1983 crash and now we should continue higher. Higher prices attract higher prices in the stock market."
Brittain sees near-term support at 2166 but says the next resistance point isn’t until 2941.