US stocks once again surged overnight, with NASDAQ and S&P 500 making new highs. Investors cheered this week CPI and PPI data from the US, which affirmed their expectation that only one more rate hike would be delivered by Fed. That came even though hawkish Fed officials continued to indicate the need for more tightening.
Technically speaking, NASDAQ’s up rally from 1088.82 is still looking healthy. Outlook will stay bullish as long as 13584.86 support holds. Next target is 161.8% projection of 10088.82 to 12269.55 from 10982.80 at 14511.22. The index could start to lose upside momentum above that projection level, form a top without even testing 16212.22 high. Reading of D MACD should be watched closely to gauge the power of the move next.
