NASDAQ Technical Analysis Today (and a possible guide for later, too)
As the S&P 500 futures continue their ascent toward a fresh all-time high, currently only about 12 to 13 points away, the NASDAQ index warrants a detailed look, especially from a broader technical perspective.
NASDAQ Technical Analysis Video
Disclaimer: This is an AI-generated image representing a real person, but the quote is FICTIONAL and intended as a joke. Nothing shown IN THE THUMBNAIL actually happened. Focus on the technical analysis chart and explanation, that is real.
The NASDAQ has established a clear upward-trending channel characterized by multiple touchpoints, reinforcing its validity. The channel’s internal dynamics offer further insights, marking critical price reaction points that have repeatedly served as reliable support and resistance areas.
Yesterday’s price action touched near the upper bounds of this channel, indicating the strength and validity of the ongoing bullish momentum. However, it’s essential to closely watch for potential breakdown signals, such as two consecutive hourly candles closing below the current ascending channel. Such a scenario would confirm a bearish activation, although traders should remain cautious about possible fake-outs.
Market Maker Activity and Liquidity
It’s important to recognize occasional sharp price movements, referred to as “shoot-offs”, often attributed to market makers. These movements typically serve dual purposes: triggering stop-loss orders positioned by bullish traders and enticing new bearish participants into premature short positions. This activity helps market makers absorb liquidity, and traders should factor these dynamics into their risk management strategies, but we have to identify, within the technical analysis, when patterns are still in play, despite of these events. See that video for one example.
Critical Levels and Potential Upside Targets
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Previous 2025 High: 22,318
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Current All-Time High: Approximately 22,550
The recent breach of the previous all-time high (22,318) earlier this week underscores the robust bullish sentiment. Given the current market conditions, further upside towards 22,550 and potentially higher levels (22,700–22,800) within the upper region of the ascending channel is plausible.
Outlook and Trading Strategy
Currently, the NASDAQ remains in a bullish configuration. Traders anticipating deeper retracements must note that as indices approach critical highs, retracements typically become more pronounced. Reasons include:
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Early Short Positions: Traders prematurely initiating short positions can amplify retracements.
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Inventory Unwinding by Large Players: Institutional investors holding significant long positions generally scale out in multiple stages, creating structured retracements and patterns such as wedges with multiple legs down.
However, despite these retracements, significant bearish signals—particularly major trend reversals on daily charts—are yet to materialize. Traders are encouraged to manage positions cautiously and look for explicit confirmations before adopting bearish stances.
NASDAQ Still Favors Bulls, Even Though Entries Are Now Harder
At present, the NASDAQ maintains its bullish momentum with potential short-term volatility and deeper retracements
