Nasdaq Eyes Resistance: Pullback Before Year-End Highs?The Nasdaq posted another strong 2% rally yesterday, even after New York’s opening session swept liquidity by hunting early long positions before reversing higher. This behavior suggests that smart money continues to accumulate positions on dips. Currently, price is pressing into a key resistance zone, which has historically triggered short-term pullbacks. For today, a reasonable scenario would be a final tap into this resistance, followed by a retracement toward the Previous Day’s High (PDH)—a level that may now act as fresh support for bullish continuation.
From a fundamental perspective, investors remain optimistic as the market increasingly prices in the likelihood of a Federal Reserve rate cut in December, which historically boosts tech-heavy indices like the Nasdaq. Additionally, overall risk sentiment has improved, supported by strong corporate earnings and stabilizing inflation trends. If momentum continues, the Nasdaq could be setting up for a push toward new highs into year-end.
