The stock market, and in particular the technology sector, has been in a selloff mode since early October. The combination of unresolved trade disputes is threatening the underlying health of the global economy reflecting negatively on stocks. Tech stocks struggled in the bearish market after they have pushed higher over the past several years based on the assumption that big growth would persist for a lot longer.

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After tumbling down to its November low around the 6450s, the NASDAQ index (NQ100) started retrieving back on November 23 following an upward trend channel. It was able to break above the 23.6% Fibonacci Retracement Level all the way up to the 61.8% retracement level around 6730s implying that the NQ100 is regaining its health.

After Fed Chairman Jerome Powell’s dovish statement yesterday, the NQ100 index broke above the channel’s upper boarder, soaring near the 100% retracement levels around 6920s with almost a 2.9% gain for the day defeating the strong resistance around 6890s. However, the index still struggles to completely defeat the 6890s resistance territory.

The double golden cross of the 50-hour moving average (Blue line) with the 100-hour moving average (White line) and the 200-hour moving average (Red line) respectively, in addition to the 100-hour crossing the 200 hours, endorses the continuation of the upward trend. Additional positive indicators are reflected in the RSI positive trading between the 60 and the 80, where Bulls show strong buying pressures trending the index upwards.

With such positive expectations, 3 strong resistance awaits the index; the 6890s, 7020s and 7230s territories. The bears however are persistence to fight the Bulls, as some reversals could hold back the uptrend for a short while. The first target for the pulls would be to pull the index back towards the 61.8% Fibonacci level before looking for new targets. If the Bears managed to drag the index beneath that level, it expects to hold around October’s low at 6575. However, bullishness seems to be the most likely scenario. The results of today’s trading session seemed to be stuck with no specific trend. Therefore, the index will be waiting for further news to show significant actions.