Introduction
NQ has gone from looking vulnerable a few weeks ago to becoming one of the strongest markets on the board again.
The rebound from the April lows has been extremely aggressive. Price reclaimed the 200-day moving average, pushed through the 50-day shortly after, and the MACD is at an all-time high. Since then, the market has been trending almost straight up as a V-reversal, with momentum continuing to build as buyers keep stepping in.
What stands out most is how little resistance the market has faced on the way up.
Pullbacks have been shallow, dips are getting bought quickly, and price has continued making higher highs with very little pullbacks. That is usually a sign that buyers still have control of the market.
Important Levels
Right now, there is not much overhead resistance left because price is pushing into fresh highs.
The important levels are mostly below the market now:
- Support: 27,000–27,200
- Secondary support: 25,500–25,600 (50-day area)
- Major support: 25,300–25,400 (200-day area)
As long as price stays above the breakout zone near 27,000, the trend remains firmly higher.
If the market starts slipping back below that area, it would be the first sign that momentum is beginning to cool.
Scenarios and Probabilities
| Scenario | Description | Estimated Probability |
|---|---|---|
| Continuation | Trend continues toward higher highs | 50% |
| Consolidation | Sideways pause above 27,000 | 35% |
| Pullback | Rotation back toward 26,500–27,000 | 15% |
The trend still favors continuation, but the odds of consolidation are increasing simply because of how far and how fast the market has already moved.
Possible Trades
The cleaner setups will likely come from pullbacks into support rather than buying extended candles at highs. Areas around 27,000 become important because they can show whether buyers are still willing to defend the breakout.
Shorts remain difficult unless the market starts losing momentum in a more obvious way. Right now, fading strength simply means fighting the trend.
This analysis is for educational and informational purposes only and does not constitute trading advice. Futures and forex trading involve significant risk and may not be suitable for all investors. Always conduct your own research before making trading decisions.
