Technology bulls started Thursday in full attack mode following a strong reception for a highly anticipated initial public offering. The Nasdaq 100 closed at 15,474, a gain of 0.8%, states Jon Markman, editor of Strategic Advantage.

The rally for the benchmark means bulls have now taken back momentum, and that is bad news for bears.

The irony is the rally on Thursday happened despite a batch of good data points for bears. Energy prices crested above $90 a barrel for the first time since last November. And the August producer price index jumped 0.7%, well above expectations. It did not matter. Bulls' sole focus was a strong reception for Arm Holdings (ARM).

The British chip designer listed shares on the New York Stock Exchange at $51 apiece, an initial market capitalization of $25 billion. Buyers swarmed market makers. The Wall Street Journal reported previously that investment banker IPO allotments for ARM were five times oversubscribed.

Shares closed Thursday at $63.59, up 24.7%. This is a significant development. The buying interest suggests ample hunger among professional investors for new public offerings. It is an appetite investment bankers will surely feed.

A new IPO cycle creates hype and shareholder wealth. This will significantly boost the NDX. The benchmark now has support at 15,305, the 50-day moving average. If bulls can hold this level through the end of the week, bears will be forced to cover short positions all the way into the September 29 Federal Open Market Committee meeting.

The FOMC is the bears’ last good hope to change the narrative. There is minor resistance for the benchmark at 15,617, then 15,637, the gap from the August 1 breakout.

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