Nasdaq 100 (NQUSD): the bull case and the bear case

The contract remains positioned comfortably above its 20-day EMA of $28,990.11 and its 200-day moving average of $26,989.33, confirming that the primary long-term trend remains intact despite recent volatility.

Market research indicates that AI stocks have likely bottomed, supported by expanding capital expenditures and deep order backlogs among the technology giants that dominate the Nasdaq 100 index.

Recent data shows leveraged Nasdaq 100 ETFs have accumulated $14.46 billion in assets, reflecting sustained institutional appetite and high-conviction positioning in the index's growth engine.

The inclusion of SpaceX in the Nasdaq 100 introduces a high-growth private equity component to the index, providing a fresh long-term driver for the underlying basket's valuation.

The MACD remains entrenched in negative territory at -176.32, suggesting that the recent price recovery lacks the underlying momentum necessary to clear immediate resistance at the 50-day moving average.

The Stochastic %K has reached 84.0, a level historically associated with overextended price action that often precedes short-term technical pullbacks or consolidation phases.

Recent sharp pullbacks in major constituents like Micron Technology highlight the vulnerability of the tech-heavy index to idiosyncratic shocks and semiconductor cycle fatigue.

The Nasdaq 100 recently entered official correction territory, creating a psychological hurdle for investors and increasing the risk of further liquidations if support levels fail to hold.