US 100 Index – Can US Data Challenge the Rally?US Tech 100 IndexPEPPERSTONE:NAS100PepperstoneThe US 100 index breezed through the psychological 30000 level on Wednesday last week as part of a run of 8 consecutive up days in a row as momentum and sentiment towards AI stocks combined to set several new record all-time highs, culminating in a close on Friday at 30340. Despite a brief wobble to start June, after concerns rose amongst traders that US-Iran peace talks may have been stalled by Israel’s deeper incursion into Lebanon, the US 100 eventually extended the run to 9 up days in a row by posting a more subdued gain of 0.5% yesterday. This move was supported by comments from NVIDIA CEO Jensen Huang who dismissed concerns over the disruptive force of AI, while the world’s largest company also announced it was entering the PC market in a direct challenge to Intel and AMD, and will run Microsoft’s windows for Arm operating system (Bloomberg). Looking forward, with the US 100 trading down 0.2% at 30425 at time of writing (0645 BST), the focus for traders may shift to updates on the health of the US economy, and more specifically on the resilience of the labour market. Tomorrow’s US ISM Services PMI survey will provide an important update on how service activity, which is the main driver of growth within the US economy, is performing in the face of rising inflation, while Friday’s crucial Non-farm payrolls release will highlight if the jobs market is maintaining its recent run of resilience in the face of mounting challenges created by the Iran conflict. All of which could impact the thinking of Federal Reserve policymakers in deciding their next move on interest rates when they meet on June 17th. Technical Update: The Trend Continues ….. From the March 31st low of 22774 into yesterday’s new all‑time high at 30656, the US 100 index has now rallied more than 34.5% across 45 trading days. During this advance, only 11 sessions have closed lower than they opened the day, producing a red candle on the chart below. This continues to indicate that positive sentiment remains in place, with no sign yet of an extended phase of weakness developing. Of course, a positive trend does not guarantee further gains. Unexpected developments can still trigger a sharp correction or a shift in sentiment. With that in mind, ahead of this week’s US data releases it may remain useful for traders to identify key support and resistance levels that if broken, may guide the next directional themes. Potential Resistance Levels: While previous all‑time highs have not always acted as significant barriers during this latest US 100 rally, the most recent extreme could still attract attention. Yesterday’s peak of 30656 may act as the first resistance point, and how price behaves around this level on a closing basis could be important. A closing break above 30656 might lead to further attempts at price strength. If upside breaks above 30656 were to materialise, the prevailing uptrend may continue to generate new highs. In that case, focus could shift to 30968, which is the 138.2% Fibonacci extension, and potentially even 31787, which is the 161.8% extension. Potential Support Levels: Given the scale of the recent rally, it could be argued that over‑extended upside conditions are present, which may lead to a period of weakness. The first key support stands at 30178, a level which is equal to half of the latest phase of price strength. If downside momentum begins to build, this could be the initial level traders focus on. A closing break below 30178 could open scope for a deeper correction phase, exposing potential to test 29846, which is the 38.2% retracement, and then 29369, which is the deeper 61.8% retracement of the latest advance. 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.