|

Bears try to break Nasdaq-100 uptrend

The US Nasdaq-100 lost 1.75% at one point on Tuesday but managed to trim its losses to 0.9% thanks to buying at the end of the session.

The index bounced off its 50-day moving average, which is an essential medium-term trend line, and in the coming days, it is worth paying more attention to the market dynamics around this indicator.

The Nasdaq 100 index broke out of its trough at the start of the year and was firmly above its 50-day moving average by mid-January. Later in March, there was only a tentative attempt to break below this line in a sell-off following a series of bank failures.

But then the markets obeyed an even more crucial technical signal - the "golden cross" - when the 50-day average crossed the 200-day average.

US index futures were higher for most of the day but pared gains in early US trading, raising the question of the relevance of a test of the medium-term uptrend.

A close below 15170 would be a signal of a change in trend to the downside, and a close below 15000 before the end of the week would confirm the change in direction and the start of a correction with the next target at 14700, where 76.5% of the amplitude from the beginning of the year is located. A classic Fibonacci retracement target (61.8%) would be around 14000, an important milestone and pivot level.

Author

Alexander Kuptsikevich

Alexander Kuptsikevich, a senior market analyst at FxPro, has been with the company since its foundation. From time to time, he gives commentaries on radio and television. He publishes in major economic and socio-political media.

More from Alexander Kuptsikevich
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued. 

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season. 

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.