NASDAQ 100: Tech Stocks Lead the Charge as Key Levels Come Into Focus

The NASDAQ 100 index has mirrored the S&P 500’s price pattern since the end of December, highlighting the significant influence of big tech on market movements. Currently, the tech-heavy index is trading around 21,341 in the pre-market session, with the price hovering above the crucial 50-day moving average (50MA).

Key Support Levels to Watch

The 50MA, currently reading 21,244, is expected to act as a support level in today’s intraday session. However, a fall below this level could signal profit-taking or weakness following yesterday’s 2.27% gain, potentially dragging the index back to trendline support or the 21,000-21,050 zone.

Last week, the NASDAQ 100 broke below a key technical trendline, but buyers quickly stepped in near the 100-day moving average (100MA). If another break below the trendline occurs, traders may again look to the 100MA for near-term support.

Upside Potential and Resistance Levels

On the upside, technical resistance is positioned near the upper trendline of the wedge, at approximately 21,450. However, as with the S&P 500, a break above this level would not immediately confirm a successful breakout.

For the index to sustain a rally and target all-time highs, it must breach the 21,700 level. Such a move would solidify the bullish case and attract further buying momentum.

Key Takeaways for Traders and Investors

• The 50MA (21,244) and 100MA remain critical support levels to monitor.
• Resistance is expected at 21,450, with a breakout above 21,700 required for further upside.
• Big tech continues to drive market momentum, underlining its influence on broader indices.

Final Thoughts

The NASDAQ 100’s current consolidation phase offers traders actionable opportunities at key support and resistance levels. Keep a close eye on the 50MA, trendline support, and 21,700 resistance for signs of the next major market move.

---