The critical resistance now seems to be at around 13,000 USD, where the medium-term bearish trendline from previous highs is located. If the index rises above that level, it could be a strong bullish signal, targeting the next level near 13,300 USD.
On the other hand, the demand zone remains in the 12,700 – 12,800 USD area, and the short-term outlook seems bullish as long as the index trades above that support.
However, if Nasdaq breaks below 12,700 USD, larger stop-losses could be hit, possibly dragging the price further lower toward March lows near 12,300 USD.
Sentiment is still fragile as yields are surging, strengthening the greenback. However, monetary policy remains ultra-loose, which is the major bullish impetus for stocks. Still, bulls are having trouble pushing the index to new highs, which could lead to a more significant correction amid stretched valuations and bonds becoming more attractive.