Nasdaq 100 Outlook: Market Caution Amid Russia-Ukraine Uncertainty and Nvidia Earnings

The Nasdaq 100 is experiencing profit-taking as investors adopt a cautious stance ahead of Nvidia’s highly anticipated earnings and ongoing uncertainty surrounding Russia-Ukraine negotiations. As of pre-market trading, the tech-heavy index is hovering around 21,303, having retreated to a key ascending trendline support level on the chart.

Nasdaq 100 at Critical Support Level

Earlier this month, the Nasdaq 100 attempted a breakout, but that effort has clearly failed. The index now finds support near 21,225, aligning closely with the 100-day moving average (21,296). This zone is expected to be a pivotal area for market direction today and tomorrow.

A clear break and close below this level could trigger further weakness, potentially leading to panic selling and a drop towards 20,834, with further downside risk to 20,500. Notably, the 20,500 level coincides with the 200-day moving average (200MA)—a level that has not been tested since September last year. If the Nasdaq 100 reaches this point, it could be viewed as a mean reversion, a natural pullback toward the long-term average after an extended rally.

Bearish Signals: MACD and Market Sentiment

The MACD indicator has turned bearish, signaling the potential for further downside in the near term unless the index stabilizes. Additionally, ongoing geopolitical concerns and broader market uncertainties are keeping investors in a wait-and-see mode, limiting upside momentum.

Key Takeaways:

• Nasdaq 100 Pre-Market Level: 21,303
• Support Zone: 21,225 (trendline) & 21,296 (100MA)
• Break Below Support Could Lead To: 20,834, possibly 20,500 (200MA)
• MACD Indicator: Bearish, signaling potential downside
• Investor Sentiment: Cautious due to geopolitical risks & Nvidia earnings

For traders and investors, watching price action at the 21,225–21,296 range is crucial. A confirmed breakdown may signal further declines, while consolidation at current levels could help reverse some bearish momentum.