How will the NASDAQ100 respond to Jackson Hole?
The NASDAQ100, given its composition has a high beta to movements in yields. Hence, what J Powell decides tomorrow could cause some volatility for the high growth tech heavy index. My guess is Powell avoids rocking the boat and the NASDAQ100 drifts along or moves slightly higher.
Price is close to its upper trend line of the ascending channel in place since September 2020. The 15500 round number could also attract sellers on a hawkish surprise from Powell. The 21-day EMA and 50-day SMA have been good sources of dynamic support, ensuring dips are bought. The mini range consolidation pattern between 15200 and 14800 were broken to the upside of recent. The RSI is making some negative divergence indicating a slowdown in buying momentum as price pushes higher. Targets would be 15500 and 16k on the upside, while on a sell-off former range resistance at 15200 and former range support at 14800 (also where the 50-day SMA is) would be interesting levels to monitor.
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