Nasdaq 100 Remains in Record Territory

9 Jul

As with the S&P 500, the Nasdaq 100 continues to rally day after day with nary a meaningful dip since April.

While the 14-day RSI isn't at it's most overbought level this year, it is showing a potential bearish divergence at the recent highs, where price makes a higher high and the momentum indicator makes a lower high (so far).

Index traders will be watching this divergence carefully to see whether it hints at a more significant top forming in the coming days.

If we do see a near-term dip, the rising trend line and previous-resistance-turned-support at 20,000 will be the key support levels to watch.

-MW