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What Could Drive the NASDAQ as It Approaches Resistance

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Feb. 20 2019, Published 12:03 p.m. ET

The NASDAQ continues its run

US tech stocks and broader markets continued to move higher yesterday, with the tech-rich NASDAQ Composite (QQQ) inching up 0.19% after eight weeks of gains. Markets have moved higher thanks to US-China trade tensions cooling and retail giant Walmart’s (WMT) upbeat numbers soothing markets.

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Approaching a key resistance level

The NASDAQ Composite has climbed 13.7% this year to 7,487, and 20.9% since troughing on December 24. The index is close to its resistance level of ~7,500, whose crossing signals bullishness. The last time the index reached this level, in early December, it fell 16.7% in three weeks. 

Markets will likely stay tuned to the Fed’s meeting today for any clues on the trajectory of interest rates, which, along with trade developments, could drive markets in the short term as the earnings season winds down. However, as we’ve discussed before, markets are facing several headwinds, meaning we may not see the same returns we have previously from the NASDAQ.

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