The Nasdaq composite‘s record close Monday indicates more gains ahead, chart analysts said.
Nasdaq 100 are “both trying to break above their highs from around March and once they do that there’s not a lot of resistance. They’ve got quite a lot of room to run,” said Sameer Samana, global quantitative and technical strategist at Wells Fargo Investment Institute.
He said any level to watch beyond the record high would be a psychological round number such as 8,000, or more than 5 percent above Monday’s levels.
The Nasdaq climbed more than half a percent Monday to within half a percent of its all-time intraday high hit on March 13. The index also set a closing record of 7,606.46, helped by an all-time high in shares of Apple, the largest stock by market capitalization.
JC Parets of Allstarcharts.com said, “7,600 is my level. If we’re above that in the [Nasdaq] composite then I think we need to be very aggressively bullish Nasdaq. I think we’re going to 11,600.”
He added, “Meanwhile, Technology is breaking out of an 18-year base since the all-time highs in March of 2000.”
Information technology is the best performer in the S&P 500 and has thus far led the index in its modest climb for the year. As of Monday’s close, technology led the 10 other S&P 500 sectors with a 13.6 percent gain since January. The consumer discretionary sector — the second best-performing sector year to date — is up 9 percent.