The Nasdaq 100 is expected to continue its upward trajectory after recently resetting its record high, according to Adam Turnquist, chief technical strategist for LPL Financial. The Nasdaq 100 comprises the largest non-financial companies listed on the Nasdaq, based on market capitalisation. These include companies like Nvidia, Tesla, Qualcomm, Intel, Palantir, and Alphabet.
Turnquist noted that following a brief drawdown earlier in the month, the NDX has climbed back to record highs with consecutive weekly gains exceeding 2 per cent. He added that buying pressure has been widespread, with advancing shares outpacing decliners by a ratio of 3:1 last week. Solid earnings reports, indications of easing inflation, strong rate cut expectations, and confirmation of an upcoming meeting between President Trump and Xi Jinping have all contributed to this buying momentum.
From a technical standpoint, the NDX has broken out from a short-term ascending triangle pattern after clearing resistance at 25,137. This breakout establishes a minimum technical-based price objective of 26,067, based on the size of the previous formation. Momentum indicators also suggest that the rally has the potential to continue.
The Relative Strength Index (RSI) has rebounded from support near the midline (50) but has not yet reached overbought levels above 70. Relative strength remains bullish, with the NDX versus S&P 500 ratio chart also climbing to record highs after consolidating earlier this fall, indicating that the trend of NDX market leadership is likely to persist.
