Iran conflict and Key US Data Collide to Influence sentimentUS Tech 100 IndexPEPPERSTONE:NAS100PepperstoneIt’s the start of a critical week for US 100 traders. The index entered correction territory on Friday, officially defined as a move of 10% below its previous high, and it briefly extended that fall in early trading this morning when it touched a low of 22901 before recovering to trade around 23162 at time of writing (0700 BST). Part of the reason for the early drop to 8-month lows could have been news of the arrival of 3500 US troops in the Middle East region on Saturday, via an amphibious assault ship (Bloomberg), which has forced traders to consider the possibility of a US led ground assault of Iran, or it could have been news that Iranian backed Houthi rebels in Yemen have officially entered the conflict after firing ballistic missiles at Israel over the weekend, opening up a new risk to oil shipments from the region. Whatever the reason for the fall and initial rebound, the price action may have already grabbed the attention of traders, which could be a good thing considering the list of scheduled events this week that may also influence the direction of the US 100 index. For example, later today Federal Reserve Chair Jerome Powell is due to speak (1530 BST) at a moderated discussion at Harvard University. Any comments he makes regarding the impact of the Iran war on inflation, growth or future interest rate moves could set the early tone for risk sentiment. Not only that, but there are also 4 updates on the health of the US labour market due this week, starting with the JOLTs Job Openings release at 1500 BST on Tuesday, then ADP Private Sector Payrolls on Wednesday (1315 BST), Initial Jobless Claims on Thursday (1330 BST) and ending with the pivotal Non-farm Payrolls release on Friday (1330 BST). These releases may face a deeper level of scrutiny and their outcome could have a more significant influence on the direction of the US 100 index as traders try and ascertain the on-going impact of the Iran conflict on US economic growth. Technical Update: A Potentially Important Breach of Support in Focus Recent price activity within the US 100 index has been skewed to the negative side. The latest decline produced the first closing breaks below 23834, the November 21st correction low, and pushed the index to levels last seen on September 2nd, 2025. In the current uncertain environment, traders may be asking whether this decline has further to run. Potential Support Levels: Following the latest price weakness, support levels are the first area to monitor. As shown in the chart below, the September 2nd low at 22990 may now be a key level for traders to focus on. It may prove useful to monitor how 22990 is defended on a closing basis. While a sustained close below this level may not guarantee further weakness, it could suggest scope for a move toward 22424, which is the 38.2% retracement of the entire April 7th to October 30th 2025 advance. If 22424 is then also broken on a closing basis, it could imply a more extended phase of weakness and a deeper retracement. Potential Resistance Levels: While support at 22990 continues to hold on a closing basis, the risks for price strength and fresh upside could begin to reemerge. This could place initial resistance at 23621, a level which is equal to half of the latest decline, under pressure. Closing breaks above this level could indicate potential for attempts at renewed price strength. As shown in the chart above, a closing break above 23621, may shift focus toward the next resistance at 23879, which is the 38.2% retracement of the latest weakness. Breaks above this level could then potentially open moves toward 24178, the 50% level, and even 24476, the higher 61.8% retracement. The material provided here has not been prepared accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research, we will not seek to take any advantage before providing it to our clients. Pepperstone doesn’t represent that the material provided here is accurate, current or complete, and therefore shouldn’t be relied upon as such. The information, whether from a third party or not, isn’t to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product or instrument; or to participate in any particular trading strategy. It does not take into account readers’ financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of Pepperstone, reproduction or redistribution of this information isn’t permitted.