US stocks stage a significant rally fueled by US China trade talks and strong tech earnings, with the Nasdaq 100 entering a bull market. Technical analysis of the Nasdaq 100 and key levels to watch.
Chart of the week: US Nasdaq 100
Bullish animal spirits have roared back into the US stock market, reignited by the weekend US-China trade talks, which led to a 90-day truce of lowered tariffs between the two superpower nations.
The rebound in risk appetite and diminished expectations of a stagflation drove the major US stock indices above US President Trump’s 2 April “Liberation Day” levels. Significant rallies in the mega-cap technology stocks put the Nasdaq 100 back into a bull market. It surged by 26% from its 7 April low to 12 May’s closing level, just above a month after it plummeted 25% from its 19 February all-time high.
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Fig 1: US Nasdaq 100 CFD Index medium-term trend as of 13 May 2025 (Source: TradingView)
Let’s review the latest US Nasdaq 100 CFD Index (a proxy of the Nasdaq 100 E-mini futures) technical chart to assess its trend bias and key levels to watch for the week.
Its price actions have decisively cleared above its 200-day moving average, which was acting as prior resistance since 6 March and formed a bullish daily Marubozu candlestick on Monday, 12 May.
Its daily MACD trend indicator has also started to inch upwards above its centreline, which suggests the start of a potential medium-term uptrend phase for the US Nasdaq 100 CFD Index.
In addition, its market breadth condition has improved, where the percentage of Nasdaq 100 component stocks has increased to 59% as of 12 May from 44% printed on last Tuesday, 6 May.
Watch the 20,110 key medium-term pivotal support for the next medium-term resistances to come in at 21,440, and 22,470/22,980 (also the upper boundary of the long-term secular ascending channel from March 2020 low).
On the other hand, failure to hold at 20,110 negates the bullish tone to expose the next medium-term support at 19,240 (also confluences closely to the 20-day and 50-day moving averages).
Keen to understand more about indices? Also read: What are stock market indices? How to invest in them?
