Market Analysis Summary: Nasdaq 100 Performance Amid US-Iran Tensions
Author: Kelvin Wong
Date: 8 May 2026
Key Takeaways
- The Nasdaq 100 remains bullish, holding above the key support level of 28,280 despite recent volatility.
- Market sentiment was affected by geopolitical tensions between the US and Iran, but recovery was noted as ceasefire expectations improved.
- Market breadth is healthy, with broad participation across components, indicating potential for continued upside.
Market Overview
On May 7, 2026, the Nasdaq 100 experienced a profit-taking session, dropping 1.3% from its all-time high of 28,825. However, it managed to close with a marginal loss of only 0.1%, outperforming other indices like the S&P 500 and Dow Jones, which fell by 0.4% and 0.6%, respectively.
The market was unsettled by renewed conflict between the US and Iran, particularly concerning a ceasefire agreement and proposals to reopen the Strait of Hormuz. Despite these tensions, the Nasdaq 100 E-mini futures showed a recovery of 0.5% on May 8, supported by positive remarks from US President Trump regarding the ceasefire.
Technical Analysis
The analysis indicates that the Nasdaq 100 is in a bullish trend, with key support at 28,280. The index is currently trading within a medium-term ascending channel, with resistance levels identified at 28,860/890, 29,150, and 29,505/615. The market breadth remains healthy, with 61% of Nasdaq 100 component stocks above their 20-day moving averages and 59% above their 50-day moving averages, indicating that the rally is supported by a broad base of stocks.
Short-Term Outlook
In the short term, the Nasdaq 100 is expected to maintain its bullish momentum, with potential for further gains if it breaks above the resistance levels mentioned. The hourly MACD trend indicator has shown a bullish crossover, reinforcing the positive outlook for the index.
Conclusion
Despite geopolitical tensions and profit-taking, the Nasdaq 100's structure remains bullish, supported by healthy market breadth and positive technical indicators. Investors should monitor key support and resistance levels as the market navigates through these uncertainties.