The NASDAQ index is currently up 430 points (+2.48%) at 17,732.80, reaching an intraday high of 17,739.04. This increase follows a double bottom formation earlier in the week, with lows of 17,238.24 and 17,239.44.
The resolution of the U.S. budget deal, which averted a government shutdown, has contributed to the positive momentum. Even at the day’s lowest point, the index was still up 188.06 points.
Technical Resistance At 50 Hour Moving Average
The 50-hour moving average at 17,773.68 may serve as initial resistance, with the index not exceeding this level since February 20. Although today shows gains, the index remains down -2.58% for the week and -11.9% from its highs on February 18.
Earlier this week, it experienced losses greater than 14% during session lows. A breakthrough above the 50-hour moving average may indicate a stronger recovery, while failure to surpass this level could result in further selling pressure.
The NASDAQ is attempting to recover from recent declines, advancing steadily throughout the session. The double bottom in place suggests a potential shift in direction after the sharp drawdowns seen in prior days. These levels near 17,238 provide an area that has already been tested twice, reinforcing their importance as a floor in the short term. Sustaining gains above this zone could build confidence among traders who have grown cautious after last week’s volatility.
A key element behind today’s move higher is the resolution of the budget negotiations in Washington. The risk of a government shutdown unsettled markets, but with that concern now addressed, some of the uncertainty that weighed on equities has diminished. This change in sentiment is reflected in today’s figures, with the NASDAQ maintaining strength even when dipping earlier in the session.
At 17,773, the 50-hour moving average represents a level that has not been breached in nearly two weeks. Technical traders will be focused on whether the index clears this hurdle or retreats. If it does break through, that would mark a notable shift, since previous rebounds have been short-lived. However, failure to advance past this point could lead to renewed selling, particularly given that over the past few sessions, rallies have given traders opportunities to exit positions rather than signal sustained interest in buying.
Market Outlook Remains Uncertain
Despite today’s strength, the broader picture remains weak. The pullback from February’s highs has been severe, and even after this rise, the index is still down nearly 12% from those peaks. Earlier this week, losses exceeded 14% on an intraday basis, indicating how sharp selling pressure has been.
With this in mind, traders must consider both the technical setup and recent patterns of market behaviour. A move beyond resistance could encourage more buyers to step in, but hesitation or rejection at these levels will likely bring renewed downside action. The coming sessions will reveal whether today’s momentum can extend or if this remains another short-term upswing within a larger decline.
