The NASDAQ index gapped lower on Friday following the U.S. jobs report, with intraday selling pushing the index further down. However, by the close, buyers managed to lift the price back above a key moving average, setting up a technical battleground for the week ahead.
Today, the index gapped higher at the open, giving early momentum to the buyers. That said, the 100-hour moving average at 20,972.46 has become the short-term focus for traders, acting as a near-term resistance level. The session high so far has reached 20,959, just 13 points shy of the 100-hour mark.
With the 200-hour moving average providing support and the 100-hour MA acting as resistance, the index is caught between two key technical levels. Sellers have so far leaned against the 100-hour MA—either to reduce exposure or initiate short positions.
Of course, in equities, the bias tends to favor buyers over time, but reversals and corrections often begin at technical inflection points, especially when momentum stalls near known resistance.
The 100-hour moving average now becomes a critical test. If sellers can defend it and push the price lower, it would signal their growing influence. But if buyers manage a break above it, it could trigger further upside momentum from the failed break in the successful defending of the 200 hour moving average.
