The Nasdaq 100 posted a modest gain on Thursday, along with the small caps, while the large-cap indices faltered. Tech and small caps are less likely to suffer earnings shortfalls from the strong dollar, so these are the horses to run with at this time.
The next upside target for the Nasdaq futures (NQ) is 4442, which is the center of a High Volume Node (HVN) on the Volume Profile chart. High volume areas are “mushy” support and resistance zones, so the NQ may chop around there for a while before continuing higher.
Upside targets beyond that critical level include the former high at 4477 and the extension zone at 4525-4530.
A Note on Volume Profile
The histogram on the left side of the chart shows the volume distribution in the S&P futures for different periods of time. Key support and resistance levels are indicated by the peaks and troughs.
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