Nasdaq Composite holds support ahead of PMI Data and Middle-East tension
Nasdaq bounces from $19,388 support
The Nasdaq Composite Index has oscillated within a tight range for the past two weeks, finding support near $19,388 and struggling to gain ground above the $19,800 ceiling.
This sideways movement reflects a market searching for direction as sectoral rotations and geopolitical tension cloud investor conviction.
- Nasdaq bounces from $19,388 support as Monday premarket ticks up 0.2%
- Alphabet-led losses pressured last week’s dip but failed to break technical structure
- Focus shifts to today’s PMI data to define short-term Nasdaq trend
Last Friday’s dip of around 250 points tested the integrity of the $19,388 support level once again. The decline was driven largely by broad-based sector weakness. Healthcare stocks posted the sharpest loss, falling 2.7%, followed by communication services at 1.7% and materials at 1.2%. Alphabet shares were particularly weighed down, dropping 4.6%, which compounded the pressure on the broader tech space. Losses across utilities, consumer discretionary, and real estate further reinforced the tone of risk reduction.
NASDAQ price dynamics (Nov 2024 - June 2025). Source: TradingView
Yet, the technical picture held firm. Despite the pullback, price action respected the critical support and bounced into Monday’s premarket session. As of June 23, the Nasdaq Composite is ticking up by 0.2%, showing resilience as traders digest President Trump's Middle East stance and inflation pressures. The market’s ability to absorb geopolitical risks without a fresh wave of selling suggests underlying confidence in the bullish structure.
Nasdaq RSI above 50 signals bullish momentum while consolidation holds
Technically, the 20-day exponential moving average at $19,310 offers additional nearby support below the horizontal base. The daily RSI, still holding in bullish territory, implies that the index has not yet broken its broader upward bias. This combination of moving average alignment and momentum indicators supports the notion that the current consolidation is not yet a reversal.
Investors are now watching today’s flash manufacturing and services PMI releases. Readings above 50.0 would point to ongoing expansion in business activity and reinforce confidence in the economic outlook. A stronger-than-expected print could tilt sentiment back toward risk assets and potentially drive a fresh test of the $19,800 ceiling.
Until then, the index sits at a decision point. Holding the current range could provide a springboard for renewed upside, while a breach of $19,310 would shift attention to deeper levels. Short-term direction hinges on incoming data and how the market processes ongoing macro concerns.
Nasdaq dropped after failing to clear $19,660 despite optimism from the Fed's tech-driven boost. The 50% Fibonacci level acted as support and paused further decline.
