Based on technical analysis data from early 2026, the Nasdaq 100 (NDX) is in a strong, established upward trend, continuing its bullish momentum from 2025. The index recently reached new record highs above 25,000-26,000, driven largely by artificial intelligence (AI) investments and strong performance from mega-cap technology stocks. 

Key Technical Trends

• Trend Status: The medium-to-long-term trend is bullish, defined by a rising channel.
• Moving Averages: The 50-day and 200-day moving averages (SMA) indicate a strong "Buy" outlook, supporting the ongoing bullish trend.
• Resistance/Support: The index is encountering resistance around the 26,000–26,054 range. Significant support zones exist around 24,000–24,112, with further support at the daily EMA 20 and EMA 50.
• Momentum: RSI (Relative Strength Index) data, often in the 60s, suggests strong momentum, but the index is periodically in an overbought state, indicating potential short-term consolidations. 

Market Drivers & Outlook

• AI and Tech Dominance: "Magnificent Seven" heavyweights (Nvidia, Microsoft, Apple, Meta) continue to lead, with AI spending fueling tech growth.
• Relative Strength: The Nasdaq 100 has demonstrated significant outperformance compared to the S&P 500 and Dow Jones, particularly in early 2026.
• Monetary Policy: Expectations of Fed rate cuts in 2026 are bolstering growth-oriented technology stocks.
• Volatility: While the long-term outlook is bullish, market analysts suggest preparing for high volatility, with potential for corrections to lower support levels. 

Sentiment Summary
The overall sentiment remains "Buy the Dip" (or Buying the Pullback) because the structural uptrend is intact, and corrections have generally been shallow and quick. Technical analysts recommend monitoring the 26,000 resistance level for a confirmed breakout, which could signal further gains toward 28,000, while a break below 24,000 would signal a stronger bearish reversal.