Friday's Market Minute: Nasdaq Futures Still Climbing, But For How Long?

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Nasdaq-100 futures traders must make a major judgment call heading into the weekend after a more than 12% rally in only about two weeks: has the selling in stocks abated, or is this merely a bear market rally? Price snapped through a downward trendline starting in early January with a 4% surge on March 16.

Volume has been noticeably low during the rally, with daily tallies below the 50-day Simple Moving Average of volume every day for more than two weeks. This may speak to lower conviction on the part of traders, but the /NQ shows few signs of slowing. Within the past few days, price has reclaimed several major moving averages, including the 50-day SMA, as well as the 63-day Exponential Moving Average and the 252-EMA.

One counterpoint to consider is the contract is also right at the yearly Volume Profile’s Point of Control, which is the price level with the heaviest trading activity and is often viewed as a significant support/resistance point, near 14,735.

To the upside, the area near 15,115 is a bit far off, but it represents the high close from February as well as the current position of the 200-SMA. To the downside, watch the major moving averages for support, particularly the longest-time period in the 252-EMA, which is currently near 14,470.

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This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.