The Nasdaq 100 bounces back supported by robust tech earnings.
The index showed exhaustion after a four-week-long bull run. A combination of an overbought RSI and its bearish divergence made traders cautious in buying into high valuations.
A break below the psychological level of 16000 has triggered a wave of profit-taking. A deeper retreat below 16020 would send the index to the previous peak at 15700 which coincides with the 30-day moving average.
On the upside, A rally above 16400 would resume the uptrend.
