Thursday's Market Minute: Nasdaq Futures Crumble Despite Strong Earnings

Big tech saw big beats this earnings season, but they haven’t translated into gains for Nasdaq futures. The /NQ stalled out in a double-top last week after making new highs by only a little more than 1% over February’s top, meandering near the upper line of a Rising Wedge pattern before failing. Bulls took a hit on Tuesday, as the tech-focused index fell -1.9% on above-average volume and sharply broke to the downside after about three weeks of choppy, sideways price action between all-time highs near 14,060 and late-April lows near 13,730.

The /NQ’s RSI and price action are showing a major stall in upward momentum, but it’s now near several noteworthy technical points that could be supportive. Tuesday’s drop stabilized near the confluence of the 64-Day Exponential Moving Average and the Linear Regression 50% Channel lower line, respectively now near 13,405 and 13,457. A drop below these levels, as well as Tuesday’s low of 13,380.75, could pave the way for further downside.

Beyond that, look for buyers to step in near the 50-day Simple Moving Average near 13,350, and also in a zone near 13,300 which was frequently a point of resistance earlier this year and should now be viewed as potential support. To the upside, watch for resistance at the 21-day EMA near 13,698 or a retest of the previous support near 13,730.

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