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Nasdaq 100: the rally holds but momentum loses steam in week seven

The Nasdaq 100 stays in buy regime at week 7, just over 6% from its all-time high. The weekly structure is full but momentum cools: MACD turning down, buyer participation collapsing, Signal Strength at 38 of 100. The first of three management references is already reached.

Nasdaq 100 · open bullish signal, week 7
Nasdaq 100: the rally holds but momentum loses steam in week seven
June 05, 2026
Nasdaq 100 · open bullish signal, week 7
In Summary
The Nasdaq 100 is in buy regime at week 7, just over 6% below its all-time high. The weekly structure stays full — moving averages aligned, price above the Ichimoku cloud — but momentum is cooling: MACD turning down and buyer participation collapsing. Signal Strength sits at 38 of 100, in the medium-weak band, while the first of three statistical profit-taking references has already been reached. A mature picture, not a reversal.
Open BUY ·7th week from start ·US Broad indices ·T1
IQS Phase
39
ordinary
Signal Strength
38
medium · weak
ATH distance
6.18%
6.18%
KPI 4
0/3
Chart · Weekly — EMA50 · MACD · VWAP
Weekly chart · EMA50 · MACD · VWAP · Source: TradingView
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Macro context and entry

On the macro front the picture is mixed. The VIX is in attention zone, up more than 25% over the past 4 weeks: implied volatility stays contained but is no longer at period lows. The bond market sends calmer signals, with MOVE in favorable territory; a favorable SKEW confirms that protection against sharp equity drops is not expensive. The dollar is in favorable territory, while market breadth measured by BPSPX slips into attention zone after an 8% drop in a month. On commodities, gold and oil are both in critical territory, both in marked retreat over recent weeks.

The basket is clearly dominated by the technology sector, which weighs more than 50% of the total. Communication services follow at 16% and consumer cyclicals at 13%. Defensives weigh just under 9%, healthcare 5%; everything else — industrials, utilities, materials, energy, financials, real estate — stays below 4% each. This concentration amplifies the signal: the index's fate is largely technology's fate, and it is technology driving the ongoing rally.

CD1D inverted
C
Moderate
Confirmation week W+1
N/A
n/a
Setup quality
Not applicable (US)
Macro Regime
Green
Favourable picture
Technical structure

The weekly read stays constructive. The four structural moving averages are all aligned, price holds above the Ichimoku cloud, and RSI at 65 works in a zone of strength without pushing into extreme territory. ADX at 25 points to a trend in place but not in full expansion. Bollinger bands work in the upper part of the range, and the distance from the EMA50 at 15% signals an appreciable extension versus the mid-term average. The delicate point is MACD: the histogram stays positive but has turned to deterioration, after weeks of continuous growth.

On the daily the picture is less decisive. Price holds above the 200-session average and above the Ichimoku cloud, ADX at 37 confirms direction, and a positive CMF signals flows still coming in. But the daily RSI slips below mid-scale and the share of buying volume has thinned noticeably: the intraday push has cooled while the weekly frame holds.

The trend review over recent weeks captures exactly this turn. The MACD histogram drew an ascending progression — 10.89, 11.75, 12.85 — before pulling back to 10.58 in the latest read. The trend of the moving averages stays stable and price never closed below the weekly EMA 200 in the observed period: the rally's skeleton is intact, it is the speed that is falling. DSO is at 44, with price just over 6% from the all-time high: the index is approaching recent highs again and breakout or rejection tension is building. The recent structural references remain the lows in the 704 area and the 654 area, while the all-time high in the 749 area marks the immediate ceiling.

DLPrice Action · Last 4 weeks
bullish with warnings (3 segnali di attenzione su 9 componenti)
Score45/ 100

Weekly reading with 3 attention signals: the structure shows fragility on components.

⚠ Attention signals (3)
PA2 · contracting volumesPA8 · buyer dominance collapsingPA9 · sellers extremely dominant in the last bar
DLIQS · Setup phase
39/ 100
ordinary
compressed · accumulationordinarystretched · mature
3-week slope: coming soon
DLSignal Strength38 / 100
38/ 100
Medium
low · fadingmediumhigh · compelling
medium · weak
DLNo-Trade Zone
No-Trade Zone · operational range Zone shaded by prevailing regime
close
623.71
809.67
701.13
732.25
DLDistance from all-time highs6.18%
44/ 100
Moderate headroom
limited · near highsordinaryample · clear above
Distance from ATH: 6.18% · Tests on highs (last 10w): 0
Confirmation weekPersistent regime

On the weekly buy regime of Broad indices the one-week confirmation candle, typical of stocks, does not apply: the PI BUY regime persists for several weeks and the regime's duration qualifies the signal.

Operational plan and levels

The No-Trade Zone (NTZ) is active: price works in the lower part of the band, close to the lower threshold in the 701 area. Structural stop levels are anchored to the weekly Inversion Point, with SL1 in the 701 area and SL2 in the 677 area (Inversion Point of prior weeks). The primary scenario stays long; on the short side the mirror levels remain available as an alternative scenario, cited here only for completeness of the operational framework.

On the statistical profit-taking areas, the picture is partial. The first of the three references — the 6th week gate — has been reached; the 11th week gate and the 17th week gate remain open, management references at the trader's discretion and not automatic closing events. The confirmation week of the previous signal, it should be noted, closed lower than the prior one: a first sign of cooling not to be underestimated.

To sum up, the Nasdaq 100 is in buy regime with a still-full weekly structure, but the cycle is in an advanced phase. Signal Strength at 38 of 100 places the moment in the intermediate band, no longer in the initial thrust: the MACD pulling back, buyer participation collapsing, and the first management reference already passed compose a picture that, according to our model, calls more for careful management of the open trade than for reinforcing the position.

Indicative profit-taking areasNot reached
reached
Area 1 · +0.00%
648.85
median 6w
Area 2 · +15.92%
726.31777.96
median 11w
Area 3 · +39.80%
881.24932.89
median 17w
Management progress · 17w window
Week 0 · entry TODAY · W7 Week 17 · area 3

Of the three-target roadmap, the 6th week gate has been reached; the 11th week gate (level 752.14), the 17th week gate (level 907.07) remain. Management of reached areas is at the trader's discretion; the remaining ones can guide partial scale-outs if the move continues.

Operational levels

LONG

Entry
648.85
SL1
701.13
SL2
676.91
reached
TP1 · W6
648.85
0.0%
TP2 · W11
752.14
15.92%
TP3 · W17
907.07
39.8%

SHORT (alternative scenario)

Entry
701.13
SL1
732.12
SL2
737.28
TP1
668.86
4.60%
TP2
659.82
5.89%
Legend of recurring termsclick to expand
IQS PhaseSetup Quality Indicator (0-100): descriptor of the index's phase relative to its volatility norm. Toward 0 = compressed/accumulation · ~50 = ordinary · toward 100 = stretched/mature. Descriptive, not predictive.
Signal StrengthCalibrated 0-100 indicator, re-modulated weekly. For buy signals it is the probability that the weekly signal reaches the first target without hitting the Stop Loss: high value = compelling bullish scenario. For sell signals it measures the amplitude of the signal week's drop: high value = very sharp drop, which may signal exhaustion rather than continuation.
CD1D invertedDaily directional compression classifier, re-read for indices in inverted key (Band A = depressed structure = ideal setup, opposite of stocks). Applicable to US indices.
Setup qualitySetup grade at trade opening. Full open · Selective open · Operation not advised · Watch/Skip. The index continues to be analysed weekly anyway.
Macro RegimeSynthetic state of the US macro context read on 8 indicators (VIX · MOVE · SKEW · BPSPX · DXY · GOLD · OIL · BDI). GREEN favourable · YELLOW attention · RED critical.
Inversion PointWeekly structural level fixing the Stop Loss reference. For a buy signal it is below entry; for a sell signal it is above entry.
No-Trade ZonePrice band where entry is not immediately operational. When NTZ is active trading is suspended inside the zone; entries become valid above the upper extreme (long) or below the lower extreme (short).
Profit-taking areas3 price levels at +4%, +7% and +10% from entry, reached on average in 6, 11 and 17 weeks (statistical reference from our Europe-UK indices backtest). States: NOT REACHED · PARTIALLY REACHED · ALL REACHED. Discretionary management levels.
Index exit gateIn our analysis framework, a weekly sell signal on Broad indices has two distinct purposes. (i) For those already long on the index, closing the trade no longer triggers immediately but requires a 3-week confirmation: price must drop at least 6% from the signal close, or the signal candle must already show that drop vs the previous week. If neither happens, the flag expires and the long trade continues normally. (ii) For those evaluating a bearish entry, the sell signal is the opening read of a new short trade.
W+1 exit noticeEditorial caveat appearing when a running bullish trade records a strongly bearish weekly candle in the first week after entry (W+1 BEAR). Signals attention on the trade's evolution.
Distance from highsPercentage distance from the all-time high (ATH) and tests on highs frequency over last 10 weeks. Close to ATH = limited running room; wide distance = room before first significant ceiling.
Disclaimer — The content on this page is published for educational and informational purposes and represents the author's personal opinion and technical analysis. It is not financial advice, a solicitation to invest, or personalised recommendation. Trading financial instruments involves significant risks and may result in the loss of all or part of the invested capital. Every operational decision is the sole responsibility of the user, who acknowledges acting in full autonomy and full awareness of risk.
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