NASDAQ to 26,000 before year end - September, 2025No doubt this idea will be controversial as a majority of ideas published on the platform call for a bearish outlook.
Earlier this year paper hands were flushed out of the market on tariff scares. They couldn’t exit the market fast enough, some didn’t actually know why they were selling as emotions were in full control.
Today those same traders and investors sit in cash as they wait for an opportunity to buy in. Others betting heavily against the trend for Armageddon. All the while the market grinds upwards and onwards.
Two very simple questions everyone must ask when entering or betting against the market:
1. What is the trend?
2. Support and resistance, which is it?
You cannot maintain a bearish bias should you answer both of those questions positively. That’s emotion. Do you find yourself scanning lower timeframes to look for bias confirmation? You'd be in majority then. Notice how many published ideas you see operating in the 15 and 30 minute charts with 2 to 3 month forecasts? Always makes me smile, but it will not change the facts of the chart.
The Trend
Higher lows are evident on the daily chart below, marked out in black. The trend is your friend until the end.
Support & resistance
Look left. On the daily chart we can see multiple support tests with confirmation on past resistance. If the levels do not at first appear, zoom out using a higher timeframe. A majority will zoom in instead to confirm bias, that’s a red flag.
The Put / Call ratio
Retail traders are aggressive in their attempts to “short” this market. Nowhere is that more evident than the Put/Call ratio. Anytime you see dumb money move the put call ratio to 90 and above, the market rips. Just recently short sellers moved the ratio beyond this level. The chart below provides a comparison with the NDX to show what happens next. The rally that follows will typically last up to 2 months on average after this signal.
Why 26000?
The market entered price discovery after the previous all time high breakout of 22k. The forecast area was previously published, see linked ideas. The same conditions that allowed those forecasts now repeat. In addition the Fibonacci extensions; the NDX repeatably rallies to the 1.618 extension after each and every emotional flush out. It’s a gift horse of an opportunity.
Previous years:
Conclusion
Markets climb walls of worry, and this moment is no different. The loudest voices today call for collapse, but the charts, price action, and sentiment data are telling another story entirely. Higher lows, confirmed support, extreme put/call ratios, and Fibonacci extensions all align with one clear outcome: continuation.
A move to 26,000 on the NASDAQ before year-end is not a wild stretch of imagination, but the logical conclusion of repeating market behaviour. Every emotional flush out has historically created the runway for price discovery to the 1.618 extension, and this time is no different.
If you’re betting against the trend, you’re not fighting the market, you’re fighting math, structure, and history. The bears may dominate headlines but that just News. The market is not listening to fear. It’s grinding higher, and the destination is 26,000.
Ww
Trade ideas
Position Sizing: The Math That Separates Winners from LosersMost traders blow up their accounts not because of bad entries, but because of terrible position sizing. You can have a 60% win rate and still go broke if you risk too much per trade.
The 1-2% Rule (And Why It Works)
Never risk more than 1-2% of your account on a single trade.
Here's why this matters:
Risk 2% per trade → You can survive 50 consecutive losses
Risk 10% per trade → 10 losses = -65% drawdown (you need +186% just to break even)
Risk 20% per trade → 5 losses = game over
The Position Sizing Formula
Position Size = (Account Size × Risk %) / (Entry Price - Stop Loss)
Real Example:
Account: $10,000
Risk per trade: 2% = $200
Entry: $50
Stop loss: $48
Risk per share: $2
Position Size = $200 / $2 = 100 shares
If stopped out → You lose exactly $200 (2%)
If price hits $54 → You make $400 (4% gain, 2:1 R/R)
Different Risk Frameworks
Conservative (1% risk)
Best for: Beginners, volatile markets, high-frequency trading
Survivability: Can take 100+ losses
Growth: Slower but steady
Moderate (2% risk)
Best for: Experienced traders, tested strategies
Survivability: 50 consecutive losses
Growth: Balanced risk/reward
Aggressive (3-5% risk)
Best for: High conviction setups, smaller accounts trying to grow
Survivability: 20-33 losses
Growth: Faster but dangerous
Warning: Never go above 5% unless you're gambling, not trading.
The Kelly Criterion (Advanced)
For traders with significant backtested data:
Kelly % = Win Rate -
Example:
Win rate: 55%
Avg win: $300
Avg loss: $200
Win/Loss ratio: 1.5
Kelly % = 0.55 - = 0.55 - 0.30 = 25%
But use 1/4 Kelly (6.25%) or 1/2 Kelly (12.5%) - Full Kelly is too aggressive for real markets.
Common Position Sizing Mistakes
❌ Revenge trading larger after a loss
✅ Keep position size constant based on current account value
❌ Risking the same dollar amount regardless of setup quality
✅ Risk 0.5% on B-setups, 2% on A+ setups
❌ Ignoring correlation risk
✅ If you have 5 tech stocks open, you're really risking 10% on one sector
❌ Not adjusting after drawdowns
✅ If account drops 20%, your 2% risk should recalculate from new balance
The Volatility Adjustment
In high volatility (VIX > 30):
Cut position sizes by 30-50%
Widen stops or risk less per trade
Market can gap past your stops
In low volatility (VIX < 15):
Can use normal position sizing
Tighter stops possible
More predictable price action
My Personal Framework
I use a tiered approach:
High conviction setups (A+): 2% risk
Good setups (A): 1.5% risk
Decent setups (B): 1% risk
Experimental/learning: 0.5% risk
Maximum combined risk: Never more than 6% across all open positions.
The Bottom Line
Position sizing is the only thing you have complete control over in trading. You can't control:
Where price goes
Market volatility
News events
But you CAN control how much you risk.
The traders who survive long enough to get good are the ones who master position sizing first.
What's your current risk per trade? Drop it in the comments. If it's above 5%, we need to talk.
NASDAQ 100 Analysis !
The current price of the NASDAQ is $26,127, and my projection points to $32,000 in the coming months, entering 2026. This analysis is based exclusively on price action, following Al Brooks' methodology, through the technical analysis developed by Josias Baltazar, one of his closest students.
Use this projection as a reference for your decisions, whether in stocks or wherever you deem it appropriate.
I'll leave this analysis here... and I'll return in the future to see how it played out.
USNAS100 Extends Rally to New All-Time Highs?USNAS100 | Bullish Continuation Toward New Highs
The index recorded a new all-time high (ATH) and has already stabilized above it, supporting further bullish momentum toward 25,400 → 25,550.
The main driver behind the move remains strong corporate earnings.
However, to confirm a bearish reversal, the price must close a 1H candle below 25,170, which would expose 25,100 → 25,010.
A sustained break below those levels could extend the decline toward 24,850.
Pivot Line: 25,230
Resistance: 25,400 – 25,550
Support: 25,100 – 25,010 – 24,860
NASDAQ Index Analysis (US100)The NASDAQ index continues its strong bullish trend, currently trading near a new all-time high around 26,140.
📉 A minor correction is expected toward the 26,000 support zone.
If the price breaks and holds below this level, a further decline toward 25,800 is likely.
📈 However, if the price bounces from 26,000, the index may retest the recent high or even create a new record high.
💡 Key Trading Levels:
✅ Buy: On confirmed bounce from 26,000 or 25,800.
🔻 Sell: Below 26,000 after confirmation.
USNAS100 ForecastThe US100 chart shows strong bullish momentum, breaking above key resistance levels. Price is expected to retrace slightly toward the 25,750–25,500 support zone before resuming its upward move toward the 26,400–26,500 target area. Overall trend remains bullish with higher highs and higher lows formation.
"Thank you for your support! If you found this idea valuable or learned something new, please consider liking and leaving a comment. I’d really appreciate hearing your feedback and thoughts."
NASDAQ Needs some sideways relief but remains bullish.Nasdaq (NDX) continues to extend the new Bullish Leg of its 5-month Channel Up, having turned the 4H MA50 (blue trend-line) as its short-term Support, in line with both previous Bullish Legs.
We still expect at least a +9.59% rise, targeting 26300, to be completed before the pattern's new Higher High is priced but as the 4H RSI turned overbought (red circle), we expect the price to slow down a little, maybe seeking the 4H MA50 again as it happened in July.
In any event, the long-term trend remains bullish, until the 1D MA50 (red trend-line) breaks.
-------------------------------------------------------------------------------
** Please LIKE 👍, FOLLOW ✅, SHARE 🙌 and COMMENT ✍ if you enjoy this idea! Also share your ideas and charts in the comments section below! This is best way to keep it relevant, support us, keep the content here free and allow the idea to reach as many people as possible. **
-------------------------------------------------------------------------------
💸💸💸💸💸💸
👇 👇 👇 👇 👇 👇
US NAS 100Preferably suitable for scalping and accurate as long as you watch carefully the price action with the drawn areas.
With your likes and comments, you give me enough energy to provide the best analysis on an ongoing basis.
And if you needed any analysis that was not on the page, you can ask me with a comment or a personal message.
Enjoy Trading ;)
NAS100 (1H) Market Outlook📈 NAS100 (1H) Market Outlook
NASDAQ is approaching a major resistance zone, with price currently extending within the upper boundary of a rising channel.
We may see a short-term bullish continuation into the top trendline, followed by a potential corrective drop back toward the 25,300–25,400 demand zone.
🧭 Key Levels:
🟥 Resistance Zone: 26,100 – 26,200
🟩 Support Zone: 25,300 – 25,400
⚙️ Potential setup: Wait for rejection confirmation before short entry.
📊 Market structure remains bullish overall, but extended exhaustion near the top trendline could trigger a pullback before continuation.
✨ Precision. Patience. Profit.
#NAS100 #US100 #IndexTrading #Forex #StressFreeTrading
US100 (NDQ): Trend in daily time frameThe color levels are very accurate levels of support and resistance in different time frames, and we have to wait for their reaction in these areas.
So, Please pay special attention to the very accurate trends, colored levels,
and you must know that SETUP is very sensitive.
Be careful
BEST
MT
Sell in NasdaqUpdated Nasdaq Market Analysis (as of October 28, 2025 – Current Price: 25,809)
Current Price: Nasdaq Composite (^IXIC) at 25,809
Intraday Change: Up +1,605 points (+6.63%) from prior close (~24,204)
Context: This marks an explosive breakout, shattering all-time highs with the strongest single-day surge in over a year. The move is driven by blowout earnings from Nvidia (NVDA), Microsoft (MSFT), and Meta (META), reigniting AI frenzy, alongside dovish Fed signals and U.S.-China trade thaw rumors.
Despite the euphoria, this is a textbook “sell the news” top — and 25,809 is an ideal short entry. Here’s why:
Why It’s a Strong Sell at 25,809
1. Extreme Overbought Conditions (Technical Exhaustion)
• RSI (14-day): 92+ → Highest since March 2000 (dot-com peak).
Anything above 80 is extreme; 90+ is a screaming reversal signal.
• Distance from 200-day MA: Now +22% above — the most extended in 25 years.
• Bollinger Bands: Price 3+ standard deviations above the 20-day mean — a classic “blow-off top” pattern.
• Volume Spike + Distribution: Today’s volume is 2.5x average, but declining stocks outnumber advancers 1.8:1 beneath the surface — institutional selling into strength.
Verdict: This is not sustainable momentum — it’s FOMO capitulation.
2. Valuations at Absurd Levels
Metric
Current
Historical Avg
Implication
Nasdaq Forward P/E
42.1x
25x
Priced for perfection
Price-to-Sales (NDX)
9.8x
4.5x
AI hype detached from revenue
Nvidia P/E
78x FY26
35x (growth stocks)
One miss = 30% drop
Even if AI growth continues, the market has already priced in 5+ years of flawless execution.
3. Earnings “Sell the News” Setup
• Nvidia: Beat estimates by 12%, but guidance only in-line — no upside surprise.
• Microsoft/Azure: Growth slowed from 33% → 29% YoY — first deceleration in 2 years.
• Options Flow: Massive call unwinds post-earnings → smart money taking profits.
History: 8 of the last 10 times Nasdaq surged >5% in a day on earnings, it corrected 7–15% within 2 weeks.
4. Macro & Event Risks Clustering
Event
Date
Risk
U.S. Elections
Nov 5
Policy uncertainty (tariffs, regulation)
Fed Meeting
Oct 29–30
Dovish cut already priced in — hawkish surprise risk
CPI (Oct)
Nov 13
Sticky inflation → rate cut delay
China Stimulus Fade
Q4
Early 2025 growth slowdown
Risk-on sentiment is at peak — any disappointment triggers rotation out of tech.
5. Sentiment & Positioning Extremes
• CFTC Data: Speculative net longs at all-time highs.
• AAII Bull-Bear Spread: +48% (top 5% historically).
• X (Twitter) Sentiment: “Nasdaq to 30,000” trending — contrarian sell signal.
Everyone is in → No one left to buy.
Trading Signal: SELL (Short) Nasdaq at 25,809
Entry
25,809 (current) or on bounce to 25,900–26,000
Target 1
24,500 (-5%)
Target 2
23,800 (-8%) – 50-day MA
Stretch Target
22,000 (-15%) – 200-day MA
Stop-Loss
26,300 (above psychological 26k)
Risk/Reward
1:3 to 1:5
Execution Options:
• Short Nasdaq Futures (/NQ) or Inverse ETFs (SQQQ, PSQ)
• Put Options: NDX Dec 25,000 puts (high liquidity, defined risk)
• Trailing Stop: Use 1.5% ATR (~400 pts) or previous day’s low
Why Now Is the Perfect Sell
• Parabolic move complete — check
• Earnings catalyst exhausted — check
• Valuations unsustainable — check
• Everyone bullish — check
• Major events ahead — check
This is the top of the AI bubble Phase 1.
The next 5–10% down will be fast and violent — sell strength, don’t chase.
Final Note: Long-term, AI and tech remain dominant. But 25,809 is a generational shorting opportunity. Lock in gains, raise cash, and prepare to buy the dip at 22,000–23,000.
Position sizing: Max 2–3% risk per trade. Use stops religiously.
Monitor: Fed statement (Oct 30), U.S. election polls, China PMI (Oct 31).
Are Institutional Buyers Returning to NASDAQ100 Again?🎯 NASDAQ100 Blueprint: The Thief's Ultimate Heist Setup 💰
📊 Asset Overview
NASDAQ:NDX | US100 Index
Market Capital Flow Analysis - Swing Trade Setup
🔍 Technical Foundation
Bias: 🐂 BULLISH CONFIRMED
The LSMA (Least Squares Moving Average) breakout has painted the perfect picture. When institutional money flows align with technical breakouts, you know the smart money is positioning for the next leg up.
Current Market Structure:
We're witnessing a textbook bullish continuation pattern with strong momentum building above key moving averages. The index is showing resilience at support zones while eyeing psychological resistance levels ahead.
💎 The Thief's Layered Entry Strategy
Entry Philosophy: "Why catch one knife when you can catch four?" 😏
This is classic Thief-style layering - multiple limit orders spread across strategic price zones to build a position with optimal average entry:
Entry Layers (Limit Orders):
🎯 Layer 1: 24,800
🎯 Layer 2: 25,000 (Psychological level)
🎯 Layer 3: 25,200
🎯 Layer 4: 25,400
Pro tip: You can add more layers based on your risk appetite and capital allocation. Scale in gradually, not aggressively.
Alternative: If you prefer simplicity, you can enter at current market price - but layering gives you the edge when volatility strikes.
🛡️ Risk Management
Stop Loss Zone: 24,600
⚠️ Important Notice: Dear Ladies & Gentlemen (Thief OG's), this SL is MY reference point based on market structure. You are the captain of your own ship - set your stop loss according to YOUR risk tolerance and account size. Trade at your own risk!
🎯 Profit Target
Primary Target: 26,000
Why this level?
Strong historical resistance zone
Overbought territory on multiple timeframes
Potential bull trap formation area
Confluence with Fibonacci extension levels
⚠️ Exit Strategy Note: Dear Ladies & Gentlemen (Thief OG's), this TP is MY analysis. When YOU see green, YOU decide when to bank it. Take profits incrementally if you prefer safety over maximum gains. Remember: Pigs get fat, hogs get slaughtered! 🐷
🔗 Correlated Assets to Watch
These pairs move in tandem with NASDAQ100 - keep them on your radar:
📈 SP:SPX (S&P 500): The big brother index - when SPX moves, NQ100 often follows
📈 NASDAQ:QQQ (Nasdaq ETF): Direct tracking vehicle for tech-heavy momentum
📈 NASDAQ:AAPL (Apple Inc.): Largest NASDAQ component - heavy influence on index direction
📈 NASDAQ:MSFT (Microsoft): Tech titan with significant index weighting
📈 NASDAQ:NVDA (NVIDIA): Semiconductor leader driving AI narrative
📈 NASDAQ:TSLA (Tesla): High-beta play that amplifies NASDAQ moves
📈 TVC:DXY (US Dollar Index): Inverse correlation - strong dollar often pressures tech stocks
📈 TVC:TNX (10-Year Treasury Yield): Rising yields = tech pressure; falling yields = tech rally
Key Correlation Insight: Tech stocks (and thus NASDAQ) typically benefit from falling yields and weakening dollar conditions. Monitor these macro factors!
⚡ Key Technical Points
✅ LSMA breakout confirms bullish momentum shift
✅ Volume profile suggests accumulation at current levels
✅ Multiple timeframe alignment (swing trader's dream)
✅ Risk-reward ratio favors long positioning
✅ Institutional money flow indicators turning positive
⚠️ Watch for: Volatility spikes near resistance, macro news events, and Federal Reserve commentary that could impact tech valuations.
🎭 The Thief's Final Words
"In the market, you're either the heist mastermind or the one getting robbed. Choose wisely." 😎
This setup is designed for swing traders who understand that patience and proper position sizing beat FOMO every single time. Layer in, manage risk, and let the market come to you.
Remember: This isn't financial advice - it's a roadmap drawn by someone who respects the market's ability to humble even the best of us.
📢 Community Support
✨ If you find value in my analysis, a 👍 and 🚀 boost is much appreciated — it helps me share more setups with the community!
#NASDAQ100 #US100 #NQ100 #SwingTrading #TechnicalAnalysis #LSMA #LayeredEntry #ThiefStyle #IndexTrading #BullishSetup #RiskManagement #TradingStrategy #MarketAnalysis #PriceAction #SupportAndResistance #TradingIdeas #StockMarket #ForexTrading #DayTrading #TradingCommunity
two scenarios for NQ on October I currently have two scenarios for NASDAQ, and both are bearish.
Scenario 1: The downtrend has already started. If we see a pullback around the 0.5 Fibonacci level, I’ll look to short again and keep stacking sell positions
Scenario 2: NASDAQ might retest the previous high — the one where the sharp drop started — move sideways for a while, and then start another leg down.
P.S. Success depends on proper risk management.
#NASDAQ #NASDAQ100
NAS100 Bearish Setup | Momentum Weakness Detected before FOMCNAS100 is showing early signs of a potential reversal after a strong bullish rally. Price action has formed a bearish divergence on the RSI — with price making higher highs while RSI prints lower highs — signaling fading momentum among buyers.
Volume has also declined during the recent upswing, suggesting weak participation in the continuation move and potential exhaustion near the recent top. A sell setup is active with the stop loss marked in red above the previous high to protect against false breakouts, while the target zone highlighted in green aligns with the next structural support and volume-based demand area.
A decisive close below near-term support would confirm bearish intent and open the path toward the target zone. Traders should monitor momentum indicators for confirmation of sustained weakness before continuation.
Position Sizing: The Math That Separates Winners from LosersMost traders blow up their accounts not because of bad entries, but because of terrible position sizing. You can have a 60% win rate and still go broke if you risk too much per trade.
The 1-2% Rule (And Why It Works)
Never risk more than 1-2% of your account on a single trade.
Here's why this matters:
Risk 2% per trade → You can survive 50 consecutive losses
Risk 10% per trade → 10 losses = -65% drawdown (you need +186% just to break even)
Risk 20% per trade → 5 losses = game over
The Position Sizing Formula
Position Size = (Account Size × Risk %) / (Entry Price - Stop Loss)
Real Example:
Account: $10,000
Risk per trade: 2% = $200
Entry: $50
Stop loss: $48
Risk per share: $2
Position Size = $200 / $2 = 100 shares
If stopped out → You lose exactly $200 (2%)
If price hits $54 → You make $400 (4% gain, 2:1 R/R)
Different Risk Frameworks
Conservative (1% risk)
Best for: Beginners, volatile markets, high-frequency trading
Survivability: Can take 100+ losses
Growth: Slower but steady
Moderate (2% risk)
Best for: Experienced traders, tested strategies
Survivability: 50 consecutive losses
Growth: Balanced risk/reward
Aggressive (3-5% risk)
Best for: High conviction setups, smaller accounts trying to grow
Survivability: 20-33 losses
Growth: Faster but dangerous
Warning: Never go above 5% unless you're gambling, not trading.
The Kelly Criterion (Advanced)
For traders with significant backtested data:
Kelly % = Win Rate -
Example:
Win rate: 55%
Avg win: $300
Avg loss: $200
Win/Loss ratio: 1.5
Kelly % = 0.55 - = 0.55 - 0.30 = 25%
But use 1/4 Kelly (6.25%) or 1/2 Kelly (12.5%) - Full Kelly is too aggressive for real markets.
Common Position Sizing Mistakes
❌ Revenge trading larger after a loss
✅ Keep position size constant based on current account value
❌ Risking the same dollar amount regardless of setup quality
✅ Risk 0.5% on B-setups, 2% on A+ setups
❌ Ignoring correlation risk
✅ If you have 5 tech stocks open, you're really risking 10% on one sector
❌ Not adjusting after drawdowns
✅ If account drops 20%, your 2% risk should recalculate from new balance
The Volatility Adjustment
In high volatility (VIX > 30):
Cut position sizes by 30-50%
Widen stops or risk less per trade
Market can gap past your stops
In low volatility (VIX < 15):
Can use normal position sizing
Tighter stops possible
More predictable price action
My Personal Framework
I use a tiered approach:
High conviction setups (A+): 2% risk
Good setups (A): 1.5% risk
Decent setups (B): 1% risk
Experimental/learning: 0.5% risk
Maximum combined risk: Never more than 6% across all open positions.
The Bottom Line
Position sizing is the only thing you have complete control over in trading. You can't control:
Where price goes
Market volatility
News events
But you CAN control how much you risk.
The traders who survive long enough to get good are the ones who master position sizing first.
What's your current risk per trade? Drop it in the comments. If it's above 5%, we need to talk.
USNAS100 | Retest Phase Before Next Bullish LegUSNAS100 – MARKET OVERVIEW | Bullish Bias With Possible Retest 🇺🇸
The NASDAQ 100 recorded a new all-time high, maintaining strong bullish pressure, especially while trading above 25,890.
Currently, the price appears to be entering a short-term retest phase toward 25,700 before resuming its upward momentum.
A confirmed 1H candle close above 25,890 will reinforce the bullish continuation, targeting 26,040 → 26,200.
However, if the index trades below 25,890, a technical correction toward 25,700 is likely.
To confirm a bearish trend, the price must stabilize below 25,660, opening the path toward 25,340.
Key Technical Levels
Pivot Line: 25,890
Support: 25,700 · 25,340
Resistance: 26,040 · 26,200
Outlook:
NASDAQ remains bullish above 25,890, but expect short-term volatility near record highs.
A daily close above 26,040 would signal renewed strength, while sustained trading below 25,660 could trigger a deeper correction phase.
US100: Nasdaq Faces Selling Pressure Below 25,200US100: Nasdaq Faces Selling Pressure Below 25,200
US100 faced strong resistance around the 25,190–25,200 zone, where price was rejected again after a sharp bullish move. This area continues to act as a major supply zone, limiting further upside potential for now.
If the bearish momentum continues, the index could correct lower toward the 24,840 level as the first target. A deeper pullback could extend to 24,610, and eventually toward the 24,350 support zone.
A clean break above this resistance would invalidate the bearish outlook and open the way for new highs.
You may find more details in the chart!
Thank you and Good Luck!
❤️PS: Please support with a like or comment if you find this analysis useful for your trading day❤️
US 100 Index – Yesterday Saw New Record Highs, What Next?Fresh optimism regarding the potential for a US-China trade deal saw the US 100 rise to a new record high of 25889 early this morning, a daily gain of 2% and an unbelievable rise of 58% from its April 6th low at 16324 when trade tensions were at their height.
Now, across the rest of this week, US 100 traders may be focused on several key events to decide the next directional moves for the index. These are, the Federal Reserve (Fed) interest rate decision, earnings from five of the Magnificent Seven corporates, and the face-to-face meeting between US President Trump and Chinese President Xi. Let’s briefly discuss each one.
On Wednesday at 1800 GMT the Fed are fully expected to cut interest rates 25bps (0.25%) when they release the outcome from their 2-day policy meeting (FOMC). What is less certain is what comes next. Markets are still pricing in a high probability of another 25bps cut at the Fed’s next meeting in December, however any indication that this may not be a sure thing could lead to a more negative outcome for the US 100. The comments made by Fed Chairman Powell in the press conference, which starts at 1830 GMT, could be crucial in this regard.
Once the Fed press conference ends on Wednesday, traders may be absorbed by the release of earnings from Alphabet, Microsoft and Meta, which are followed by the updates from Amazon and Apple after the market close on Thursday. Remember, it wasn’t that long ago that worries about an AI bubble negatively impacted the US 100, and so the focus in these results could be on AI spending, future revenue growth and costs.
The final event is the face-to-face meeting between President’s Trump and Xi which takes place in South Korea on Thursday, the first in 6 years. Current expectations are for the heads of the world’s two biggest economies to agree a series of deals on rare earth metals, soybeans, shipping levies and export controls. Whether these agreements match up to expectations could be pivotal to the direction of the US 100 into the weekend.
Technical Update: Mind The Gaps!
CFD price activity typically forms in relatively smooth patterns, rising in uptrends or falling in downtrends. While brief corrections may occur, they’re often limited in scope and duration before the prevailing trend resumes, unless a shift in sentiment triggers a directional reversal.
Occasionally, within an orderly price advance or decline, acceleration phases emerge, which can result in gaps in price activity. These gaps occur when a CFD closes one session and then opens higher in an uptrend or lower in a downtrend the next day, reflecting a surge in trader interest in the direction of the prevailing trend.
Within technical analysis, there are three types of price gaps, each offering insight into trader sentiment and directional risk. Below is a brief overview of each.
Breakaway Gap: Typically seen at the start of a new trend, this gap reflects strong trader conviction, buyers are willing to pay higher prices at the open in an uptrend, or sellers accept lower prices in a downtrend. It can often be seen to complete a reversal pattern and signals a possible shift in sentiment.
Continuation Gap: Forming within an established trend, this gap can confirm ongoing sentiment, buyers continue to pay higher prices in an uptrend, or sellers accept lower prices in a downtrend. It reinforces confidence in the prevailing move.
Exhaustion Gap: Found in mature trends, this gap reflects late-stage trader entry at already overextended levels, reflecting poor timing, as most of the move has already occurred. It may signal panic buying or selling, with positioning then heavily skewed in the direction of the prevailing trend.
When positioning becomes overly one-sided, with no buyers left in an uptrend or sellers in a downtrend, price can be most vulnerable to a sentiment reversal, often triggering corrective moves.
US 100 Index: Watching the Gaps
The eagle-eyed among you will have noticed that the charts used to illustrate gap concepts above feature the activity of the US 100 Index, which since the April 7th low, is possibly a good example of these gaps in price action.
The latest gap, formed between last Friday’s close and Monday’s open, is labelled as both a possible continuation and exhaustion gap, as it’s unclear at present what this move currently represents. It could signal a continuation of the uptrend from the April lows, or mark an exhaustion point, raising the risk of a sentiment reversal.
Monitoring future price action may help determine whether the latest gap reflects continuation of the uptrend or signals exhaustion, suggesting the risk of price weakness.
If Latest Activity Proves to be a Continuation Gap
If the gap from Friday’s 25374 close is a continuation gap, it could signal a further phase of price strength. This would imply that if price action holds above 23474, upside momentum may still be evident.
If the US 100 Index holds above support at 25374 it may then go on to challenge the next resistance at 25937, which is the 61.8% Fibonacci extension. A break above this level might even open the path toward 26393, which is the 100% extension.
If Latest Activity Proves to be an Exhaustion Gap
If the latest gap activity reflects exhaustion, with positioning skewed too far to the long side, it may lead to a phase of price weakness following the recent advance. A closing break below 25374 could build on these themes and even suggest possibilities of a more extended phase of price weakness.
A move below 25374 could signal fading buying support, suggesting a shift toward lower levels. If evident, downside risks may extend to 25079, which is the 38.2% Fibonacci retracement, potentially even toward 24668, a level marking the 61.8% retracement.
The material provided here has not been prepared accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients.
Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.






















