Nasdaq technical evaluation after Friday’s massacre

After Friday’s rout, Nasdaq futures fight to regain control

Buyers have stepped back into Nasdaq futures after Friday’s sharp decline, but the battle for higher-value acceptance is still underway.

After the gap-down open, NQ did not continue lower. Instead, buyers stepped in, pushed price back toward Friday’s close area, and then accepted higher value above the important 29144-29150 zone. That is constructive and suggests the market is no longer in immediate panic mode.

The short-term score is now around +4 / +10.

This is for, as noted, for the short term, and can change later today. Watch the key price levels, those are not just random spots on the chart.

That means the market has shifted from bearish pressure into bullish repair, but it is not yet a full bullish takeover.

What’d you miss? Main market moving events that may have an affect on the Nasdaq

• Global markets felt the sting of Friday’s sharp sell-off as the new trading week began. In Asia, the Nikkei sinks 3.5% as it follows Friday’s US rout, South Korea battered, with popular tech and computer-chip stocks taking the heaviest hit before managing a slight bounce.
• Despite the overseas tumble, the U.S. market is pointing toward a calmer open. We are currently seeing three signs of a better start to the week after Friday’s rout, including steadying gold prices, a calming U.S. dollar, and a slight bump in stock futures. Part of this early optimism stems from hopes of easing global tensions, especially as recent headlines suggest Trump: Israel will have ‘no choice’ but to accept deal with Iran.
• Crypto markets are also catching their breath. Following a rough weekend drop, Bitcoin analysis as the futures market opens, post Friday’s crash shows the digital currency bouncing back toward $63,000. However, analysts note it still needs to firmly cross the $64,580 mark to prove the recovery is meant to last.
• Even with today’s stabilization, some top experts suggest playing it safe. The Head of US equity and quant strategy at BoA sees too many red flags in stock markets, warning that popular tech stocks might be too crowded and overvalued right now. To weather any future bumps, Bank of America recommends looking at everyday essentials and traditional energy companies instead.

Nasdaq price action as the week opened and what it means

The main positive sign is that price reclaimed and held above 29150, then pushed into the 29240-29280 area. The move also showed higher value migration, meaning buyers were not only creating a bounce, but were beginning to build acceptance at higher prices.

However, there is a reason not to chase. The latest bars show some cooling near the highs. Buying pressure is still present, but not as aggressive as during the earlier recovery. That makes the current upper zone more fragile.

A pullback toward the 29076 VWAP area could become interesting for a possible long setup, but only if buyers defend it. The logic is simple: after a strong repair move, buying near VWAP can offer better risk/reward than chasing near 29250-29300.

Key levels to watch:

The bullish path would be a controlled pullback into 29076-29100, followed by buyer defense, VWAP hold, and reclaim above 29150. That would support another attempt toward 29250-29300.

The bearish risk is a clean failure below 29076, especially if price then fails to reclaim 29150. That would suggest the repair is weakening and could bring 29029 and 28970 back into play.

It is important to note to kep mind open to both Nasdaq going up or down, according to the key levels. I try to let price’s reaction to the key levels be of guidance.

For now, the market is repairing after Friday’s bloodbath, but traders should separate repair from full bullish control. The better long opportunity may come on a disciplined pullback, not from chasing the current upper extension. On the other side of the coin, below 29900, bears are starting to look better again.

Always do your own research and trade at your own risk only.