US stocks soared overnight, with NASDAQ and S&P 500 both extending their record runs with gains exceeding 1%. Investors responded positively to Fed Chair Jerome Powell’s two-day semiannual testimony, even though forex markets remained relatively unchanged.
Powell refrained from hinting at the timing of Fed’s first rate cut but acknowledged that the risks to the economy are now more balanced. He emphasized that “elevated inflation is not the only risk,” reinforcing expectations that Fed would move quickly to ease policy if economic and job market conditions show significant signs of cooling.
Technically, near term outlook in NASDAQ will stay bullish as long as 18034.99 resistance turned support holds. Next target is 100% projection of 12543.85 to 16538.86 from 15222.77 at 19217.78.
Or, NASDAQ might be targeting long term target of 100% projection of 6631.42 to 16212.22 from 10088.82 at 19669.62. Or it’s actually targeting 20k psychological level.
In summary, if NASDAQ can stay above 18k mark, a rapid move to 20k could be on the horizon.
