Technology stocks have started the year on a solid footing supported by Microsoft’s announcement to invest $80 billion this year on data centre infrastructure and hopes that the potential trade tariffs that will be initially implemented by Donald Trump’s administration may not be as sweeping as first thought.

Next however, Nasdaq 100 traders must negotiate a week packed full of tier 1 US economic data releases, which brings the strength of the economy and labour market back into focus. These updates start later today with the ISM Services PMI survey and JOLTs job openings releases scheduled for 1500 GMT.

Traders will be looking for reassurance that service activity remains firmly in expansion territory, above 50, and so is well positioned to be the driver of US economic growth at the start of 2025.

While for the JOLTs release, alongside ADP private sector payrolls tomorrow at 1315 GMT, weekly jobless claims on Thursday at 1330 and Non-farm payrolls at 1330 GMT on Friday, expectations are for these to all show a US labour market that is gently slowing down rather than dropping dramatically, which while unlikely, may be a nasty surprise.

Against such a potentially challenging macro backdrop it can be helpful to consider the technical indicators and trends for the Nasdaq 100.

Technical Trends:

The first full trading week of 2025 has seen the Nasdaq 100 index start on a positive note, as a rally has developed, so far at least. This comes after January 2nd activity tested 20711, the December 20th extreme, with the subsequent rally confirming this as a possible support focus. While this is intact, a more extended phase of price strength could be seen.

These themes appear to be supported by Monday’s break and close back above the Bollinger mid-average, currently at 21460, which may be turning higher once more, to suggest an uptrend is again materialising.

While this is not a guarantee of future price strength, focus could now shift to 21832, the December 26th session high, possibly then, although much will depend on future price trends, towards 22142, the December 16th all-time high.

What are the Possible Supports?

As we’ve said, latest activity has confirmed the 20711 December 20th low as a likely support and defense should be watched. However, this point giving way may see a more extended phase of price weakness emerge.

Closes below 20711 could suggest risks may well be turning towards a deeper retracement of August to December strength. The 38% level stands at 20270, which links with 20309 November 19th session low, and this might be a lower support level. However, if it were to give way on a closing basis, tests of 19904, the November 4th low, could be on the cards.

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