9:35 AM Β· 6 January 2022

πŸ“… Chart of the day – US100 (06.01.2022)

  • US100 failed to hit ATH when US30 and US500 did last time
  • Index tests key supports
  • A large sell-off possible if supports broken

US100 is clearly the most intriguing market instrument today. Index based on 100 high-cap tech stocks traded in the US has seen an incredible rally since March 2020 lows. This has been based on two factors – major shift to tech amid restrictions and extremely supportive monetary policy. While the tech shift is permanent, the policy accommodation can be unwound rapidly in months to come. Given extreme valuation metrics for US tech stocks, will it lead to a sharp reversal?

So far each test of a lower limit in a huge wedge formation was a “buy-the-dip” opportunity and also each a-b-c correction proved to be just a pause in this massive rally. Both supports are now being tested in a make-or-break situation for US100.

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