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.
US tech 100 daily chart