Big Breakout For Nasdaq Futures

Nasdaq futures are enjoying a 13% rise from their 30-day lows, including an impressive rally of almost 5% during Jerome Powell’s speech yesterday that took the contract above a potentially key level. A chart of the /NQ shows a trendline stretching from the yearly highs near 16,729 in late 2021 across highs from March, August, September, and earlier this month, which yesterday’s upside breakout smashed through.

The move upward also propelled the /NQ through its 21-day and 63-day Exponential Moving Averages with a strong close near the highs, while this morning’s price action squeaked out new intraday highs beyond the old relative highs from Nov. 16. 

Other notable technical developments after yesterday’s rally include a volume spike greater than the 50-day Simple Moving Average of volume, a move beyond the yearly Volume Profile’s Point of Control (price level with the highest level of trading activity), a bullish Parabolic SAR crossover (used by traders to assess trend direction and set stop losses), and the RSI (a measure of momentum of price change) making new relative highs with price.

For potential support, look to the old trendline, the 21-EMA, and 63-EMA, all of which are converging near the zone between 11,650 to 11,750. If those fail, the next area to watch could be the double-bottom near 10,725. For resistance, look to the 252-EMA near 12,730.

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