Nasdaq pennant breakout puts record highs back in play

If the Composite can thrust to new highs, traders will likely turn their attention to a weekly Gann line near 27,850, which is projected to rise to around 27,925 next week. Gann lines, drawn at specific angles from key highs and lows, are used to identify potential support, resistance and market turning points.

Notably, this particular Gann line, drawn from the 2022 bear-market low, has repeatedly acted as a hurdle for the Nasdaq, including during rallies in May and June.

On the downside, a break below the August 11 low of 26,372.31 could shift attention back to the August 4 gap, which would require a decline to 25,967.44 to be filled. The 50-day moving average is currently near 25,900, while the rising 100-day moving average stood at 25,203 as of Thursday's close.

U.S. equity index futures mixed, changes modest.

July retail sales MM < estimate; Ex-Autos MM < estimate.

Euro STOXX 600 index ~flat.

Dollar falls; bitcoin off ~1%; U.S. crude ~flat; gold gains.

U.S. 10-year Treasury yield edges up to ~4.65%.

The Nasdaq Composite .IXIC climbed 0.81% on Thursday to close at 26,803.03, breaking out of a bullish pennant pattern, a period of consolidation that typically signals an uptrend is ready to resume.

The move comes as technology .SPLRCT continues to lead the S&P 500 .SPX this month, supported by strong performances from semiconductor stocks .SOX and software names .SPLRCIS.

The momentum appears to be carrying into Friday. E-mini Nasdaq 100 futures NQc1 are up about 0.3% ahead of the opening bell, pointing to another positive start for the tech-heavy index.