Nasdaq Rallies Above Friday High as Key Support Brings a Bounce
Author: James Stanley, Sr. Strategist
Date: April 3, 2026
Market Overview
The Nasdaq index experienced a notable rally, surpassing its previous Friday high, as it found support during a recent dip. Despite fears stemming from geopolitical tensions in the Middle East, equity investors have shown resilience, leading to a bounce back in the market.
Market Reaction
Initially, the market reacted negatively with a gap-down at the Sunday open. However, buyers quickly stepped in, resulting in a positive close on Monday. On Tuesday, the market faced selling pressure, exacerbated by a strong rally in the US Dollar. Nevertheless, a critical trendline on Nasdaq 100 futures held, indicating potential for further upward movement.
Support Levels
The support zone identified two weeks prior remains significant, particularly as the market approaches key earnings reports, such as NVIDIA's. The support range between 24,578 and 24,721 has been tested multiple times, and sellers have struggled to break below this area.
Chart prepared by James Stanley; data derived from Tradingview
Short-Term Outlook
As the Nasdaq futures show a well-developed upward move, caution is advised when chasing the bounce due to potential risks. The ideal scenario would see the 25,000 level defended, with the previous swing high at 24,850 serving as a secondary support level. The current higher-low printed near the bottom of the support zone suggests a bullish outlook, provided the market maintains above the critical levels.
Chart prepared by James Stanley; data derived from Tradingview
Conclusion
In summary, the Nasdaq's recent performance indicates a strong response from buyers despite external pressures. The established support levels will be crucial in determining the market's next moves, particularly as it approaches significant earnings announcements.