US stock indices bounced after the Nasdaq Composite and Nasdaq 100 held their 200-day moving averages; both are now testing initial resistance levels.
After the Nasdaq Composite and the Nasdaq 100 pulled back to their 200-day moving averages yesterday, the wider US equity indexes are moving upward today. Buying emerged at those technical levels, which brought the slide to a stop. The current session is seeing a rebound now that support held.
For the Nasdaq Composite, the low hit yesterday was 25,145.95, only slightly above its rising 200-day moving average, located near 25,073. The Nasdaq 100 finished closer to its own marker. That index touched 27,967.44 at the bottom, a level just over 15 points above the 200-day moving average, currently 27,952.83.
The Nasdaq Composite is now ahead by 191 points, or 0.76%, and the Nasdaq 100 has risen 202 points, or 0.73%. So far, the support zone has held, keeping buyers involved. The question now is whether the rally can extend and push through resistance.
On the Nasdaq Composite, the first ceiling appears near 25,570. Past that, the swing level at 25,831.74 is the following major target. Yesterday's peak stalled just shy of that level before the index headed lower. A move above it, with sustained trade above it, would strengthen buyer confidence and support the recovery.
Until those ceilings are broken, the bounce could still give way to another failed advance. Support has been defended, but the burden is now on buyers to reclaim resistance. Should they fail, the spotlight returns to yesterday's lows and the 200-day moving averages beneath.
For the Nasdaq 100, the initial ceiling sits near 28,538. Above that, the swing zone from 28,822 to 28,953 is the next upside objective. To ease the downside pressure and firm up confidence in the advance, buyers must clear that area and hold it. Until then, sellers can lean on these levels and retain a technical bias that favors them.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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