Nasdaq holds uptrend structure despite tariff shock and weak Wall Street session
Momentum indicators stay bullish across all timeframes
The Nasdaq Composite Index has shown resilience this week, maintaining its bullish structure even after a tariff-driven dip on Monday.
The index slipped 1.4% from its all-time high of 20,620 to a low of 20,320 following trade policy concerns triggered by President Donald Trump’s announcement of additional tariffs. Still, by holding above July’s opening price at 20,370, the broader uptrend remains intact.
- Nasdaq holds above key Fibonacci and EMA supports this week despite tariff-driven pullback
- Tuesday’s narrow 0.5% range signals short-term indecision amid bullish structure
- Momentum indicators stay bullish across all timeframes, reinforcing the uptrend structure
Tuesday’s session was marked by narrow trading. The index stayed confined to the lower end of Monday’s range, fluctuating in a limited 0.5% price range and recording no meaningful change by close. This price action reflects short-term indecision but does not yet signal a reversal, especially as the pullback stayed above key Fibonacci retracement levels.
NASDAQ price dynamics (May- July 2025). Source: TradingView
Meanwhile, the broader Wall Street mood tilted slightly negative on Tuesday. The Dow Jones fell 0.4% to 44,240.8, and the S&P 500 dipped 0.1% to 6,225.5. Selloff in consumer staples and utilities dragged the indexes down, although energy stocks posted modest gains. Still, compared to these benchmarks, Nasdaq’s price structure remains technically firm.
Nasdaq trades flat, but RSI and EMA structure support continued bullish outlook
Momentum indicators continue to favor the Nasdaq Composite bullish continuation. On the 1-hour, 4-hour, and daily charts, the RSI is firmly in bullish territory, pointing to sustained buying interest. Price also holds above key short-term moving averages. On the one-hour chart, the 20, 50, and 100 EMA are all trending higher. The 100 EMA at 20,300 aligns precisely with the 61.8% Fibonacci retracement level of the most recent rally, providing a critical support zone.
On the four-hour chart, the 20 EMA sits near 20,220, aligning closely with the 78.6% retracement level. This further confirms the bullish structure, as prices are yet to breach key downside levels that would negate the trend.
Ahead of the North American session on Wednesday, Nasdaq futures point slightly higher following reports that the Trump Administration plans to announce more tariff schedules later this week. While this creates short-term uncertainty, traders are focused on whether the Nasdaq can reclaim Monday’s losses and retest the 20,620 high.
If buyers succeed in holding the key support zones mentioned, the next leg higher could be underway. However, any further selling driven by trade-related headlines must not violate the key EMA and Fibonacci confluence zones, or sentiment could shift bearish.
Fresh U.S. tariffs shook investor sentiment and weakened tech sector confidence. Nasdaq fell 0.4% as price tested support near 20,260 while RSI stayed bullish.
