NASDAQ composite and NASDAQ 100 weather the Nvidia fallout

Nvidia shares rebounded after testing the $146.50–$151.84 technical target band. The session low of $148.80 put it inside that support zone.

The zone held, and the price pushed higher from there. The fallout from Nvidia raised questions about the broader tech indices, the NASDAQ composite and NASDAQ 100.

Both indices have bounced near important technical support. Buyers still have work to do before they can take greater control.

NASDAQ composite: Key support area draws buyers

The NASDAQ composite dropped below its 200-day moving average (25,129.88), but drew buyers ahead of the 38.2% retracement (25,036.33) of the move up from the April low.

The intraday low reached 25,068.28, placing it between these two levels. Buyers defended the support. The index moved back above its 200-day moving average, with a rebound high of 25,401.16.

That gives buyers something to work with. The 200-day moving average at 25,129.88 is now a close risk indicator. Staying above it would keep the recovery heading in the right direction.

The next upside test is the falling 100-hour moving average at 25,587.98. To take more control, buyers must get above and hold above that average. A sustained break would open a move toward 25,831.74.

A drop back below the 200-day moving average would weaken the recovery. A further break below the 38.2% retracement at 25,036.33 would hand sellers more control and open the door to more downside momentum.

The next key target to the downside is the 50% midpoint at 24,206.50. The decline earlier this month stalled just ahead of that level.

The support zone attracted buyers. They must now show they can hold the recovery and break resistance.

NASDAQ 100: Botched breakout hands buyers a new opportunity

The NASDAQ 100 moved below its 38.2% retracement at 28,108.03 and its 200-day moving average at 28,028.41. Sellers could not keep momentum going below the moving average.

The index has rebounded to around 28,158, putting it back above both levels. The inability to sustain the break offers buyers a fresh chance. The re-claimed support area now serves as a tight gauge of risk.

On the upside, the falling 100-hour moving average at 28,460.25 remains the next hurdle. Breaching and holding this level would strengthen the buyers' standing and bring the swing area between 28,822 and 28,953 into play.

A move back below 28,108.03 and then 28,028.41 would weaken the recovery and give sellers another opportunity to extend the decline. The key downside target would be the 50% midpoint (27,103) of the advance from the end of March low.

Trading lesson: A bounce is only the first step

Holding support helps define risk. It does not, by itself, signal a trend change.

For the NASDAQ composite, buyers found support between the 38.2% retracement and the 200-day moving average before reclaiming the average. In the NASDAQ 100, the dip under the 200-day moving average generated no sustained selling.

Those reactions matter. They provide traders with benchmarks to assess whether buyers can stay active in the market.

The next test is overhead. Both indices must get and stay above their declining 100-hour moving averages to build a bullish case. If support levels give way first, sellers reassert command.