NASDAQ index rise by 430 points | Forexlive

The NASDAQ index is surging today, currently trading up 430 points (+2.48%) at 17,732.80, with an intraday high of 17,739.04. The index has rebounded sharply after forming a double bottom earlier in the week, with Tuesday’s low at 17,238.24 and a similar low at 17,239.44 in yesterday’s session. This technical pattern gave buyers confidence to step back in.

Overnight, the resolution of the U.S. budget deal that averted a government shutdown further fueled bullish momentum, allowing buyers to push higher. Even at today’s low, the index was still up 188.06 points, indicating strong upward pressure. However, the falling 50-hour moving average at 17,773.68 is now in play, which could act as initial resistance. The NASDAQ has not traded above this key technical level since February 20, making it a critical test for the current rally.

Despite today’s strong gains, the index remains down -2.58% for the week and is still -11.9% off its highs from the week of February 18. Earlier this week, losses exceeded 14% at session lows, underscoring the recent weakness. If buyers can push through the 50-hour moving average, it could signal a stronger recovery, but failure to break above may lead to renewed selling pressure.