Nasdaq Composite dropping to 7900, then back to 9800
Huge amount of panic is driving global markets down, IXIC will drop to some strong psychological support before coming back up again.
Looking at monthly chart, 20 month moving average is roughly 8000, 100 week moving average is 7900, so 7900-8000 is very possibly the price level where this short term downtrend will reverse.
In extreme case of panic, IXIC may drop straight to the bottom of the ascending channel in one month, down to 7500.
Like I said in the previous article, 7500-8200 is a good buy zone, the virus panic will eventually finish, governments may reduce interest rates close to zero or negative, in months the long term uptrend will resume. I don't see a major downturn indicated by American demographic cycles, the dow is nowhere near the end of a cycle, so this crash in 2020 is definitely not the start of another 2008 or 2000 collapse.
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