Nasdaq breaks above key resistance

Market chart showing uptrend
Fiona Cincotta
By :  ,  Market Analyst
The Nasdaq trades over 2% higher at the time of writing, reclaiming yesterday’s losses.

The index is benefiting from a risk on mood thanks in part to better than forecast jobless claims data.

Jobless claims rose by 712k vs 725k expected.

Approval of the $1.9 trillion stimulus package by the House of Representatives yesterday added to the upbeat mood. As did a successful 10 bond sale which saw enough demand to drive yields lower.

The Nasdaq has pushed over a descending trendline dating back to 16th February. A close over this now support around the 13000 mark would be considered a bullish signal.

Bulls could then look towards 13185 the confluence of the 20 & 50 sma on the daily chart.

Failure to hold that support around 13000/ 12975 could see a test of 12725 today’s low and a level which has offered support several times this year.

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