Nasdaq 100 futures (NQ)
Technical Analysis

NASDAQ Futures (NQ) Bearish Divergence?


The Nasdaq 100 futures are currently trading around 18,876.75. Over the past month, the index experienced a gain of approximately 5.76% since late April​ (​.

This performance is driven by strong corporate earnings from major tech companies like Nvidia and Microsoft, which have posted better-than-expected results. Nvidia’s surge of 9% following earnings and optimistic AI computing spending projections has been a key factor​ which is driving the positive price action in NQ.

Technical Analysis

The weekly chart shows just how strong the uptrend in NQ has been this year. Bulls are fully in control, but there are signs of possible bearish divergence emerging on this time frame. This could lead to a few months of sideways movement as we approach the second half of the year.

The bearish divergence is on the RSI but has still not been confirmed. From here, it could be best to avoid long trades because of the divergence but it does not automatically lead to us having to take shorts. We could see sideways action as mentioned.

Daily Chart

The pullback that we see on the daily found support inside the 50/100 MA zone. The daily is showing NQ is extended. Looking at it, long trades have passed for now.

Market Sentiment

Positive earnings reports have buoyed investor sentiment, with Tesla’s 9.7% stock rise significantly boosting the Nasdaq index. Additionally, other tech giants such as Microsoft and Biogen have reported earnings that exceeded expectations, further contributing to the market’s optimistic outlook​ (FX Empire)​​ (​.

Risk Management

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