Nasdaq cements its best start to a year since 1975

The Nasdaq Composite Index has kicked off 2023 with a historic performance, achieving its most impressive start since 1975. Despite concerns about a potential recession, the index has displayed remarkable resilience, surging over 37% year-to-date as of the end of July.

The upward trend has been consistent, with green months recorded in 6 out of the 7 months of the year so far. With only 13.50% more to run before it gets back to all time highs set in November 2021, it will be interesting to watch how this plays out over the second half of the year.

From a technical standpoint, traders are closely monitoring the current price action within this crucial resistance zone. The market’s reaction here will determine its short-term direction. Will the resistance zone hold strong and push the price downward, or will the momentum be strong enough to break through and continue its journey toward all-time highs?

Zooming out to the weekly timeframe, the Relative Strength Index (RSI) has been floating around overbought territory since mid-June. This confluence with the resistance zone indicates a possible cooling off period in the coming weeks. This scenario wouldn’t be overly surprising, as markets often experience a breather after significant surges.