The Nasdaq 100 posted a .46% gain on Friday, which was equal to the S&P 500 in percentage terms, but less than the Dow (.94%) or the Small Caps (1.09%). The Dow was able to rally due to a 1.34% drop in the US Dollar Index. The Dollar Index is likely to run 20% higher this year, however, which will generate headwinds for the mainstream large caps, but should not hurt the more speculative Nasdaq 100.
The NQ futures came within a few points of our second target on Friday afternoon at 4477, the recent high. I expect some consolidation here in the Support Zone indicated on the Volume Profile chart. After that, the index should reach the target extension zone at 4525-4530.
By the way, this appears to be a perfect time to take trading profits in the Biotech ETF (IBB).
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.
#####
If you would like to receive a primer on using Volume Profile, please click here.
