Nasdaq soars, correction seems over.


The Nasdaq 100 index kicked off the new weekend very well, and it was trading 2% higher during the early US session on Monday.

It looks like investors have forgotten the worsening COVID situation worldwide, and they just bought tech (and other) stocks again. The index has been rising nonstop since the Sunday open. 

The initial resistance now seems to be near previous highs of 11,550 USD, which might be tested today, considering the strong bullish momentum. If this level is broken to the upside, the previous correction should be over, at least according to the technical analysis. 

In that case, the Nasdaq 100 index would be expected to rise toward 12,000 USD rather quickly, with the possibility of new all-time highs soon after that.

Moreover, it looks like a double bottom pattern on the daily chart, which is a bullish reversal formation. The support of this formation is near 10,680 USD, and the neckline is at 11,230 USD, making the full potential of this formation circa 550 USD from the neckline. 

Thus, bulls will be targeting the 11,900 USD level if this formation holds. The intraday support is now at the broken neckline of 11,230 USD, and while the index trades above it, the short-term outlook seems bullish. 
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