On the 30-minute chart, the market previously broke out above the December 24 all-time high, forming a rising channel. After consolidating briefly and retesting the breakout zone, price action continued higher, reaching above the midpoint of the ascending channel.
Currently, the price is retreating from that mid-channel zone, with futures down approximately 0.6 percent. This is considered a meaningful decline given the context of recent bullish momentum and the lighter liquidity environment due to the U.S. holiday.
Why does today’s price action matter if U.S. markets are closed?
Although U.S. equity markets are closed in observance of Independence Day, NASDAQ futures continue to trade. Global flows, especially from Europe, remain active. These sessions can offer important price signals, particularly when futures deviate from expected range behavior. In this case, the market’s rejection from mid-channel suggests that buyers may be stepping back temporarily.
What are the key support levels to watch?
The primary technical support zone now lies between 22,830 and 22,855. This green-shaded region aligns with the lower pane of the gray ascending channel drawn from the recent breakout.
Should that area fail to hold, the next level to monitor is 22,775, which corresponds with the VWAP from July 2. A decisive break below this VWAP level could open the door for a broader correction or a more significant trend shift.
Is the overall trend still bullish?
Yes, the larger trend remains bullish as long as price stays within the rising channel structure. However, today’s pullback may indicate that momentum is cooling off in the short term. If buyers defend the lower channel edge and VWAP, a new leg higher remains possible. Conversely, a clean break of these levels may shift the narrative to caution or neutral.
What should traders keep in mind?
This session is unfolding with reduced U.S. participation, so caution is warranted. Key support tests around 22,830 to 22,855 could set the tone for the next move
