NASDAQ100 Futures Trade Flat After Bulls Run Free

Bullish traders took the bull by the horns, bypassing fears of a U.S. Default in the past week and heavily bought into the NASDAQ100 Futures (CME: NQ).  

Traders piled into the index on the back of a promising future for Artificial Intelligence and tech companies. The index gained a staggering 3.42% last week, thanks to the buying frenzy spurred by NVIDIA Corporation (ISIN: US67066G1040) following its positive earnings and improved guidance.  

The week ahead is jampacked with market-moving events, which traders will be eyeing as they determine whether the Federal Reserve is warranted to hike rates this coming month.  


The NASDAQ100 Futures shot above a barrier characterised by excess supply in the past week to further bolster the uptrend, with the 100-day moving average left behind. The 14280.50 level was shattered, undoing its resistant properties and leaving it as a possible support level for the current market structure. The next point of interest is resistance, located at the 14663.50 level, which forms the 23.6% Fibonacci Extension level.  

If bullish momentum persists, bulls could be in contention to claw back some losses incurred from the steep interest rate hiking cycle, leaving the 14663.50 level probable. Alternatively, if bullish traders lose their footing, bearish traders could begin to unshackle their progress, with a retracement toward the 14280.50 level likely.  


Since price action is consolidating sideways in a rectangle pattern, traders could be waiting on the sidelines for critical economic data to pursue a direction. The U.S. will unveil its manufacturing index and labour market reports, with the Non-Farm Payrolls the most anticipated data for the week. If price action breaks out of the consolidation pattern on high volumes, an extended move in the direction of the breakout is likely. Bears will look to the 14280.50 level for short opportunities, while the 14663.50 level potentially validates a bull case.  

Sources: CME, Reuters, TradingView