The USNAS100 has recovered approximately 9% from its July lows, highlighting the return of strong buying momentum across the technology sector.
The latest rally has been supported by improving risk sentiment, driven by easing inflation expectations, strong corporate earnings from major technology companies, and renewed optimism surrounding artificial intelligence investments.
At the same time, the recent de-escalation of geopolitical tensions in the Middle East, particularly the growing optimism over a potential agreement to reopen the Strait of Hormuz, has reduced concerns over global energy supplies and pushed oil prices lower, improving investor confidence and encouraging capital to rotate back into growth-oriented assets such as the Nasdaq.
Recent market strength has also been reinforced by the strong rebound in semiconductor shares, which remain one of the primary drivers of the Nasdaq's performance.
From a technical perspective, the Nasdaq has confirmed a strong recovery after successfully defending the Support Zone, allowing buyers to regain control of the broader trend.
Price is now approaching the Bullish Continuation Zone, which represents the first important decision area before testing the Major Resistance Zone (30,327–30,708).
A healthy consolidation inside the continuation zone would be constructive, allowing the market to build momentum before attempting another leg higher.
A confirmed breakout above the Major Resistance Zone would strengthen the bullish structure and could open the door for a fresh impulsive move, while a rejection from this area may trigger a temporary correction toward the Bullish Continuation Zone before buyers attempt another breakout.
As long as the index remains above the current support structure, the broader market bias continues to favor the upside.
Overall, the Nasdaq remains technically constructive, with both macroeconomic and geopolitical developments continuing to support risk appetite.
Nevertheless, investors should continue monitoring upcoming U.S. economic data, Federal Reserve expectations, corporate earnings, and any changes in geopolitical conditions, as these factors are likely to determine whether the current recovery develops into a sustainable breakout above major resistance or pauses for a deeper consolidation.
Note: This analysis is based on current technical and fundamental conditions. Market sentiment can change quickly following major economic releases or unexpected geopolitical developments. Always manage risk according to your trading plan.
