Nasdaq 100 strength has extended. However, economists at Credit Suisse expect the index to move back lower from the 12856/81 resistance zone.

Weekly close above 12856/81 would suggest a more meaningful move higher can emerge

“We continue to look for the key resistance from the 38.2% retracement of the 2021/22 fall and YTD high at 12856/81 to cap to define the top of a broad range.” 

“Near-term support moves to 12407, below which can add weight to our view for a fall back to the key 63 and 200-DMA cluster at 11963/05. Below 11695 is needed to warn of a falll back to the ‘neckline’ to the small base from the beginning of the year at 11093.”

“A weekly close above 12856/81 would instead suggest a more meaningful move higher can emerge for resistance next at the 50% retracement and summer 2022 high at 13603/721.”