It took more than 16 years but two weeks ago, the tech heavy Nasdaq index poked its nose above the record high achieved at the peak of the dot.com boom. Shortly afterwards, Fed officials started talking about rate hikes and investors got a bit wary. The Nasdaq has retreated from its brief foray into new high ground and is now showing the clearest chart resistance of the major US indices
The big picture monthly chart above reveals a couple of aspects to this resistance. The first is the dot.com boom high shown by the dashed line. However, a line drawn across last year's peaks also intersects around the same level. It would probably take a move through 4900 to get well clear of this resistance zone.
On the other hand, recent lows are creating a minor support zone on the daily chart. A clear break below this would be a sign of weakness suggesting a more significant downward correction is a real chance.