NQ 100 bulls checkmating bears in strong impulsive uptrend

💡 DMK Insight

The Nasdaq’s bounce back is impressive, but traders need to be cautious as it approaches the 78.6% Fibonacci resistance level. This level often acts as a significant barrier, and a failure to break through could trigger profit-taking or short positions from those who anticipate a reversal. The recent bullish momentum suggests that buyers are stepping in, but the real test will be how the market reacts at this Fibonacci retracement. If it breaks above, we could see a rally towards previous highs, but if it falters, expect increased volatility and potential pullbacks. Keep an eye on volume as well; a surge in volume on a breakout would strengthen the bullish case. On the flip side, if the Nasdaq fails to maintain momentum and reverses, it could drag down correlated assets like tech stocks and ETFs. Watch for key price action around this resistance level in the coming sessions, as it will dictate short-term strategies for many traders.