Rebound Lifts Major US Indices, Yet Resistance Looms Ahead

Major US stock indices are rising during Tuesday's session, clawing back some of the prior day's losses. At the time of the video recording, the S&P 500 had gained 0.25%, the Nasdaq Composite had added 0.60%, and the Nasdaq 100 was up 0.70%.

This bounce is encouraging for bulls, as each of the three benchmarks held critical technical supports on Monday. But defending support is merely the initial step. All three indices still face upside barriers before buyers can assume greater command.

S&P 500 holds its floor, but remains in a neutral area

The S&P 500 touched a key swing region on Monday between 7,573.60 and 7,617.37. That zone previously acted as resistance before the index broke above it. Since then, the old resistance has turned into support, with buyers repeatedly defending that area on dips.

The 50% Fibonacci retracement level at 7,564.73 sits just under the swing-area floor, reinforcing the support cluster. Buyers held that zone, and prices have moved higher today.

The immediate challenge is the top of the swing area at 7,617.37. A decisive move above and sustained trading above that level would strengthen the bullish case and direct attention toward:

• 100-hour moving average: 7,667.37

• 200-hour moving average: 7,695.83

While the price remains within this range, the 7,573.60–7,617.37 band is a neutral battleground. Traders should be ready for momentum to follow whichever side breaks out.

Nasdaq Composite bounces from its 100-day moving average

The Nasdaq Composite also reached a meaningful support area on Monday. The index touched its rising 100-day moving average at 26,013.38, with additional swing support in the vicinity of 25,910.82.

Buyers stepped in at the 100-day moving average, and prices have risen today. Staying above that moving average keeps the bulls in the game, but the rebound now confronts a more significant test at the hourly moving averages:

• 100-hour moving average: 26,293.66

• 200-hour moving average: 26,360.52

Those moving averages halted the previous recovery attempt. Bulls need to clear and hold above both thresholds to boost the bullish outlook. Until then, the Nasdaq Composite trades in a neutral zone between support below and the hourly moving averages above.

Nasdaq 100 remains below its 100-day moving average

The Nasdaq 100 defended a key swing zone on Monday between 28,822.67 and 28,953.26. The 50% retracement level at 28,969.11 also fell within that area, adding to the support cluster.

That was a solid defense, but the index still trades below its 100-day moving average at 29,212.12. The intraday bounce stalled under that level, leaving sellers with the upper hand in the near term.

For buyers to enhance the technical setup, they need to recapture the 100-day moving average and then push through:

• 100-hour moving average: 29,315.73

• 200-hour moving average: 29,442.12

Without a move above those levels, the rebound remains corrective in nature. Sellers would still need to drive prices below the 28,822.67–28,953.26 support zone to reignite downside momentum.

Trading education: Holding support is only step one

Support and resistance should be understood as a process rather than a single signal. When the price holds at support, it tells traders that buyers are willing to enter and gives them a level where risk can be defined. However, a bounce by itself does not confirm that buyers have seized control.

Confirmation arrives when price reclaims resistance and remains above it. That follow-through demonstrates that buyers are not just defending a floor; they are also overcoming sellers positioned above.

In today's situation, support held across all three indices, but each still faces resistance. The Nasdaq 100 has the most ground to make up because it remains below its 100-day moving average. Price action at the next resistance levels will offer the next clue.

The technical roadmap

• S&P 500: Above 7,617.37 targets the 100- and 200-hour moving averages at 7,667.37 and 7,695.83. A breakdown below 7,573.60, followed by 7,564.73, would weaken the technical outlook.

• Nasdaq Composite: Holding above the 100-day moving average at 26,013.38 keeps buyers in contention. A move above 26,293.66 and 26,360.52 is required to strengthen the bullish bias. A drop below 26,013.38 would redirect focus toward 25,910.82.

• Nasdaq 100: Recapturing 29,212.12 is the first bullish milestone, followed by 29,315.73 and 29,442.12. A break below 28,822.67 would hand sellers greater control.

The key takeaway is that bulls successfully protected support, but they have not yet secured the next objective. There is potential for a stronger rebound, but upside work remains.