The Nasdaq 100 is moving sideways this week. Its top ETFs like QQQ and JEPQ are doing the same. Investors are holding back as they wait for major news from the US.
The index is trading near $25,787. That is just below its record high of $26,787. The market feels calm, but not for long.
The price chart is sending a positive signal. The Nasdaq 100 has formed a pattern that often shows strength building up. It usually appears before a strong move higher.
The index has a clear ceiling near $25,860. At the same time, the recent lows keep rising. This shows buyers are stepping in earlier each time.
The index is also staying above key trend indicators. This usually means momentum is still pointing upward.
If buyers push the index above resistance, it could move back toward its previous high near $26,178. A break above that could open the door to $27,000. That level is important because it is a round number many traders watch.
Earnings season is another major factor this week. Some of the biggest US companies are about to report results.
Large banks start things off. JPMorgan, Bank of New York Mellon, and Delta report first. Bank of America, Wells Fargo, and Citigroup follow next. Morgan Stanley, Goldman Sachs, and BlackRock report later in the week.
Not all of these companies are in the Nasdaq 100. Even so, their results often shape overall market mood. They help investors understand how the economy is really doing.
So far, analysts expect profits to grow around 8% in the fourth quarter. In many past seasons, actual earnings ended up better than forecasts.
More big tech results are coming soon. Names like Apple, Microsoft, and Meta will report in the weeks ahead. These companies carry huge weight in the Nasdaq 100.
Economic data will also play a big role. Inflation numbers are due later today. Markets expect headline inflation near 2.6% and core inflation around 2.7%.
Inflation matters because it guides the Federal Reserve. It helps decide when interest rates might change.
This data follows a mixed jobs report from last week. The economy added about 50,000 jobs. At the same time, the unemployment rate improved to 4.4%.
More data is coming midweek. Producer prices and retail sales will be released on Wednesday. These numbers give clues about business costs and consumer spending.
All of this comes during rising political tension. The Justice Department recently signaled a possible lawsuit involving Federal Reserve chair Jerome Powell. Many analysts link this to ongoing disagreements between Powell and Donald Trump.
With charts tightening and major news ahead, the Nasdaq 100 may not stay quiet for much longer.