Top in Place? NASDAQ100 Signals Exhaustion After Incredible Run📈 The crazy run since April
NASDAQ100 has had a spectacular run since early April, when the index dipped to 16,300 amid rising tensions caused by Trump’s tax war. From that low, we’ve seen a mind-blowing rally of over 7,000 points, which translates to a 40% gain in just 4 months.
Such a rise is not just impressive— it’s overextended , especially by historical standards. Markets don’t move in straight lines forever, and this one might be showing signs of fatigue.
🕯️ Bearish signal at the top
Fast forward to this week: yesterday, the index marked a new all-time high at 23,700, but closed the day with a strong bearish engulfing candle — one that wipes out the gains of the previous 4 trading sessions.
This is not a small technical detail. Such candles, when appearing after an extended rally, often signal exhaustion and a potential shift in momentum.
❗ Top in place?
In my opinion, there's a high probability that a top has been set, at least temporarily. We might be looking at the beginning of a healthy correction, or even something more meaningful, depending on follow-through in the next sessions.
📉 Where to next?
The first major support to watch is the 22,200 level.
I expect that zone to be tested soon — and honestly, considering how much the index has gone up, this shouldn’t surprise anyone. It’s nothing more than a minor pullback, all things considered.
🧠 Stay smart!
When markets go vertical, it pays to stay disciplined and realistic. Tops rarely announce themselves, but when signals like this appear, it’s wise to listen.
Disclosure: I am part of TradeNation's Influencer program and receive a monthly fee for using their TradingView charts in my analyses and educational articles.
