$13,000.00 is certainly a huge level for the Nasdaq Composite Index. This key area held multi week lows in January and is now providing solid support following the recent pullback. Why is the $13K area important? The 2020 high is very close, a high that was set the last week of the year. It is also the zone of a 1/3 retracement of the powerful rally(+30%) off the Oct/Nov lows.
Back in early September a very similar bull channel gave way. At the early September peak the Nazz had gained 80% off the March lows. In early April the index began tracing out a very similar bull channel. The pullback that followed was well contained within a narrow consolidation pattern. It wouldn’t be until late November that the Nazz reached new rally highs.
Is a repeat coming? Hard to say but one thing for certain, the $13,000.00 area is key.
Of note, while the $SPX and the $DJI put in new weekly lows during today’s early going, the Nasdaq Comp did not.