Nasdaq 100: Seagate, Micron Lift US Indices on Ceasefire Optimism

Nasdaq-100 Extends Last Week’s Four-Month Gain as Ceasefire Talk Supports Sentiment

The Nasdaq-100 along with the other major indexes opened the week strong extending last week’s biggest gain in four months, as investors reacted to developments in the Middle East. While Iran rejected a ceasefire proposal, reports that the U.S. and regional players are discussing a potential 45-day truce helped support sentiment. Investors are still cautious, knowing the situation could change quickly, but for now, any sign of progress is giving the indices a cautiously bullish tone, which could be more than safe-haven buying.

Technical Outlook

June E-mini Nasdaq-100 Index futures are edging higher, shortly after the mid-session, but off its high. The index is in a downtrend on the daily chart, but the closing price reversal bottom at 22961.50 on March 31 and its subsequent confirmation has shifted momentum to the upside.

The nearest swing top is 25705.00. Closer to the market is the 50-day moving average at 24989.67 and the 200-day moving average at 25028.74. Both levels are resistance and potential trigger points for an acceleration to the upside.

Traders should also note that the 50-day MA has crossed to the weak side of the 200-day MA, suggesting the market is getting weaker. However, today’s steady trade indicates investors aren’t too concerned about this at this time.

The main range is 26754.75 to 22961.50. Its 50% to 61.8% retracement zone at 24858.25 to 25308.75 is the primary upside target. Ironically, inside this zone are the moving averages. The combination of these two independent indicators, makes this area the most important spot on the chart. Trader reaction to this zone will set the near-term tone.

The short-term range is 22961.50 to 24452.25. This is another tone-setting zone. New buyers could come in on a test of this area. This could help form a potentially bullish secondary higher bottom. If sellers drive the market through the bottom of this range then start preparing for a renewed downtrend if 22961.50 fails as support.

Chipmakers and Tech Names Lead the Nasdaq Higher

Tech is doing the heavy lifting today. Seagate Technology is the standout after Morgan Stanley named it a top pick. Micron Technology, Western Digital and SanDisk followed it higher. The whole semiconductor sector is catching a bid as investors bet that earnings hold up despite March’s selloff. AppLovin is also moving after analysts turned bullish on its advertising business and AI tools. When the chip names lead, the Nasdaq follows and that’s exactly what’s happening today.

More Information in our Economic Calendar.