A Friday close above the weekly trend marker and 7,334.69, according to LSEG data, would strengthen the breakout after the index cleared resistance that had capped gains since late 2024.
Analysts say holding those levels could trigger a faster, riskier advance, potentially a blow-off rally, while a drop below the May 4 low of 7,174.12 would raise chances of a retreat toward 7,000.
The move has been driven by AI enthusiasm and hopes for peace in the Iran war, with technical watchers also focused on 7,334.69 because the index has often struggled near multiples of its 2009 crisis low.
Why is the market ignoring rising recession risks from the Iran conflict to chase an AI rally?
With the power grid at its limit, is the AI-driven market rally built on an unstable foundation?