NDX to Test Highs
March 11, 2021
The NASDAQ 100 is rebounding as 10-year yields consolidate below technical resistance in the 1.61-1.70% range. A sustained NDX close above 12,750 should generate a further rally to test the mid-February record high of 13,807. We’re watching the NDX closely because that’s where recent weakness has been concentrated and because the move from support at 12,200-12,400 to a test of 13,807 is a significant tradable event. Most NDX constituents are also short-term oversold and bond yields are stretched relative to fundamentals. A period of bond yield consolidation should stem the bearish price action in the NDX, temporarily invalidate the short selling narrative and encourage long investors to return if higher bond yields are simply a reflection of positive economic expectations.