The Nasdaq (NQ100) is testing its all-time high again. A move above it could trigger more buying, while a reversal could lead to a pullback.<\/p>\n
There is room for price to rise before the next resistance at ET zone 8. However, yesterday\u2019s bearish candle shows there is opposition near current levels.<\/p>\n
One scenario is a bearish bounce at yesterday\u2019s high, which could lead to a larger drop. Price may fall back to ET zone 7, where a bounce could then develop.<\/p>\n
Another scenario is a break above yesterday\u2019s high, which could allow one more push higher. After a new higher high, a pullback may occur before a later move towards ET zone 8.<\/p>\n
On the four-hour chart, price used ET zone 8 as support after a corrective pattern. Price has now returned to the prior top, which is acting as a key level.<\/p>\n
A break above the marked resistance could open a move towards ET zone 9. An ABC retracement could instead send price back to the 21 EMA area and the ET zone 8 level.<\/p>\n
The depth of any retracement depends on momentum. It may stabilise at the lower part of the 21 EMA zone, or continue lower if that area does not hold.<\/p>\n
The Nasdaq is at a critical all-time high, forcing a decision in the coming weeks. Yesterday\u2019s hesitation shows that while bullish momentum is strong, there is opposition at these levels. This sets up a classic breakout-or-reversal scenario for our trading strategies.<\/p>\n
This tension is happening as we’ve just seen the April CPI data come in at a slightly cooler-than-expected 3.3%, which generally supports the case for a bullish breakout. Last week\u2019s jobs report also showed a modest slowdown with 175,000 jobs added, giving the Federal Reserve more reason to pause, which is fuel for the Nasdaq. This fundamental backdrop suggests the green arrow scenario, a push to new highs, is very possible.<\/p>\n
For derivative traders anticipating a breakout above the high, buying June call options or establishing bull call spreads offers a way to capitalize on a move toward the ET 8 resistance zone. This strategy allows us to participate in a fresh round of buying with a defined risk. We saw similar setups play out well during the rallies in 2025 after positive inflation prints.<\/p>\n
However, the risk of a bearish reversal, as shown by the pink arrow, should not be ignored. If the market rejects these highs, a swift pullback could occur. Traders can prepare for this by purchasing put options, which would profit from a decline back towards the ET zone 7 support level.<\/p>\n
For those expecting a small pullback before the next leg up, like the orange arrow scenario, selling out-of-the-money put credit spreads with a strike price below the 21 ema zone could be effective. This strategy benefits from time decay and a bounce at that key support area. Historically, even strong uptrends like the one in late 2025 featured brief, sharp pullbacks that rewarded patient bulls.<\/p>\n
The 4-hour chart shows that the ET 8 zone has acted as a solid support level in the past. If we see a corrective dip back to this area, it could represent a prime opportunity to re-enter long positions. We will be watching for a bounce at that support to signal a continuation of the primary uptrend.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Nasdaq retests all-time high; breakout may spur buying, rejection may cause pullback toward ET zones 7\u20138 soon.<\/p>\n","protected":false},"author":103,"featured_media":16992,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-49503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t