This is a follow-up analysis of our prior analysis “Nasdaq 100 Technical Outlook: Bearish move materialised; how low can it go?” dated 1 April 2025.
Since our last publication, the Nasdaq 100 CFD Index (a proxy for the Nasdaq 100 E-mini futures) has tumbled 16%, breaking below the 17,300/17,250 medium-term support zone highlighted in our report. It went on to test the major support level at 16,590, printing an intraday low of 16,335 on April 7 before recovering to close higher at 17,508 by the end of the U.S. trading session.
In a dramatic move on Wednesday, April 8, U.S. President Trump announced a 90-day suspension of the increased reciprocal tariff rates for countries that choose not to retaliate, excluding China from this exemption.
Tensions between the U.S. and China remained high, as the White House imposed additional tariffs on Chinese goods, raising the tariff rate to 125% in response to Beijing’s retaliatory measures of imposing 84% duties on all US imports.
The U.S. stock market skyrocketed, posting significant gains across major indices. Mega-cap-focused benchmarks, the S&P 500 and Nasdaq 100, surged by 9.5% and 12%, respectively. The Dow Jones Industrial Average and the small-cap Russell 2000 also rallied, climbing 7.9% and 8.7%, respectively, as investor optimism fuelled a broad-based market upswing.
Yesterday’s massive rally in the Nasdaq 100 marked its largest single-day gain since 2001, and the second biggest on record, trailing only the 19% surge recorded on January 3, 2001.
The key question on most traders’ minds now is whether yesterday’s stellar performance signals the start of a medium-term bullish reversal in the Nasdaq 100, or if it’s merely a corrective rebound, commonly referred to as a “dead cat bounce.”
