NDXUSD

The technology-heavy Nasdaq 100 index gained strength from the strong US consumer confidence data released on Tuesday. While the data indicates economic strength, it could also raise expectations that the Fed might tighten further. A critical development for the index will be today’s FOMC meeting minutes. The pivot level for the Nasdaq, which is sensitive to interest rates, is 21337.89. If the minutes reflect a hawkish stance, it could pull the index towards the support levels of 21246.38 (S1) and 20995.34 (S2). If the Fed's tone is more dovish than expected or if there is a perception that fighting inflation will not significantly hinder economic growth, the resistance levels of 21588.93 (R1) and 21680.44 (R2) could be targeted. The GDP data on Thursday and the Core PCE data on Friday will also be significant for technology stocks.