Since the beginning of the year the US technological index gained almost 20.5% plus last week rose more than 1.5% and it remains in a bullish phase since early December 2016.
Last week the index rose with a narrow range but closed near the high of the week, in addition managed to close above the previous week range, which suggests a strong bullish momentum.
The 10 week moving average continues to provide a solid dynamic support for the price that continues to push upward and bounce from it.
Stochastic is showing an extreme overbought market and is setting lower highs while price is making higher highs, signs of a potential bearish divergence.
Expecting a downward move to a Fibonacci extension at 5,744.00 on a bounce from other Fibonacci extension at 5,925.00 (scenario 1) however a bounce from the Fibonacci extension at 5,744.00 may trigger another bullish run up to 5,925.00 (scenario 2).