US tech 100 technical analysis
Following the US Tech 100’s surge higher on 12 May, we have been working with the view that the rally from the 21 April 17,592 low is a Wave III (Elliott Wave). This should soon be followed by a Wave IV pullback, before regrouping for another leg higher to complete a five-wave advance from the April 16,542 low.
Last week’s rejection from a three-month high of 21,482 suggests the US Tech 100 is likely in a Wave IV pullback, which could see the index retrace back into the 20,500 – 20,300 support area. We expect this support area to contain weakness before retesting the 21,482 high (Wave V).
However, we continue to highlight that a sustained break below the support provided by the 200-day moving average (MA) at 20,305, followed by a sustained break below the medium-term support 19,250 – 19,150 area, would negate the positive bias and warn of a retest of the April lows.