The Nasdaq 100 looks vulnerable to a pullback.

Pullback does not equal bearish trend. However, tomorrow is a big day for the markets as we are bracing to hear Fed Chair Powell’s speech at the Jackson Hole Symposium. Bonds look a little weak and if he leads us to believe a “taper” of bond purchases will happen sooner rather than later, then bonds may be pressured sending yields higher. If that happens, we have seen that some of the tech stocks could trade heavier in the weeks ahead. The Nasdaq 100 has had some divergent relative strength since July. However, we are also at the top of an ascending channel and it would be possible the index trades back towards the 14,000 level support and breakout point in the weeks ahead of yields do continue to rally. Support near term is at the 14725 level and a break of this support would mean a “lower low” shifting the uptrend more into a range.