The NASDAQ index is rebounding sharply from its session lows after testing a key cluster of technical support levels. At the worst levels of the day, the index was down -389.29 points before buyers stepped in. It has since trimmed those losses significantly and is now down around -107 points, or -0.42%, at 25,988.48.
Earlier in the session, the index pushed to a high of 26,026.17 shortly after the open before sellers took control and drove prices sharply lower. Even at the session high, however, the NASDAQ was still down -64.56 points on the day, underscoring the broader negative tone early in trading.
From a technical perspective, the hourly chart shows the session low at 25,701.44 tested an important confluence of support levels. Most notably, the decline reached the rising 100-hour moving average. The low also tested the 38.2% retracement of the rally from the April 22 low at 25,749.03, along with a key swing level from May 7 at 25,713.65.
Although the price briefly traded below that support cluster (see blue line and yellow area on the chart above), downside momentum quickly faded and buyers regained control. The sharp rebound from the area reinforces the technical importance of that zone not only for today’s session, but also going forward.
If sellers are able to break and stay below the 25,700 area, it would likely trigger increased downside momentum and shift the near-term bias more firmly in favor of the sellers. Until then, buyers can still argue the broader uptrend remains intact after successfully defending a critical technical support region.
