Nasdaq's five-month stall leaves support in the spotlight
QQQ•The Nasdaq Composite has gained just 0.25% in 110 trading days since May 14, despite remaining near its October record. Traders are watching support levels as Nasdaq 100 futures fell more than 1.5% before Thursday's open.
1. Five months of sideways trading
The Nasdaq Composite rose about 1.1% on Wednesday to 26,702.86, 3.3% below its October 6 record close. Since setting a then-record close on May 14, the index has gained just 0.25% across 110 trading days, as investors weighed concerns including oil prices, inflation, interest rates, AI spending, debt levels and the midterm elections.
2. Support levels in focus
The index's 100-day moving average ended Wednesday near 26,275, with the 23.6% Fibonacci retracement at 26,063. If those levels fail, traders may look to 25,803 and 25,450, followed by support around 25,000. That level includes the 38.2% retracement, the June low and the 200-day moving average; a decline there would put the index just over 9% below its record close.
3. Resistance and market pressures
Initial resistance is near the 50-day moving average at 26,630 and Wednesday's intraday high of 26,679, with the June 1 intraday high at 27,190 beyond that. Nasdaq 100 futures were down more than 1.5% before Thursday's open after Tesla and Meta Platforms earnings did little to ease AI spending concerns, while higher oil prices further dampened sentiment.
