The NASDAQ surged higher on Monday following the weekend developments, gapping above both its 200-hour moving average (26,284.98) and 100-hour moving average (26,383.84). That move shifted the near-term technical bias firmly back in favor of the buyers. For the sellers to regain control, they would need to push the index back below those key moving averages. Until then, the current pullback is best viewed as a normal correction within a strong upward move rather than the start of a deeper reversal.
Despite today’s modest decline, the index remains comfortably above its key support levels, leaving little reason for buyers to be concerned. Since Thursday’s low, the NASDAQ has rallied nearly 6.7% in just three trading days, making some profit-taking and consolidation a natural development. As long as the moving averages continue to hold as support, the upside remains favored.
On the topside, the next key target comes in at 26,826.97. A break above that level would increase bullish momentum and open the door for a test of the all-time high at 27,190.21.
