Nasdaq-100 futures made new all-time highs this week, breaking above the 11,000 level after two failed attempts last month and logging eight days of gains during the past nine for a 7% rise. Bulls have been stampeding since the COVID-19 selloff, and the tech-heavy index is now up a staggering 70% off the lows. The week saw relatively subdued trading volume as the /NQ pushed above the upper boundary of the Linear Regression 50% channel near 11,188.
The RSI is on the verge of crossing into the overbought area, which would typically be viewed as bullish in terms of momentum. However, traders should also note that the RSI has been showing bearish divergence since mid-June, meaning price made new highs while the RSI did not during corresponding times. The concept of old resistance becoming new support suggests that the 11,000 level will be important to watch going forward, with the 21-day EMA near 10,806 below that as another likely point of support.
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