The Nasdaq 100 index has already accumulated a loss of over 4.0% during today’s session and has declined more than 12% since its peak on February 18. The strong bearish movement remains intact as the market anticipates that the new 25% tariffs imposed on countries like Mexico and Canada could begin affecting production costs for U.S. companies. In the long run, this may lead to a low-return environment that could be unfavorable for the index.
Additionally, companies such as Amazon, Nvidia, and Microsoft have seen declines between 3% and 5% in recent sessions, reinforcing the bearish pressure on the Nasdaq due to their heavy weighting within the index.
Momentum Accelerates
With the strong downward bias currently present in the chart, selling pressure has been able to break through the support level at 19,700 points. However, the rapid price acceleration is beginning to have a significant impact, which could lead to short-term bullish corrections.
Oversold Indicators
Bollinger Bands: The bearish momentum has broken below the lower Bollinger Band, which could indicate a high acceleration in recent price movements.
RSI (Relative Strength Index): The RSI line continues to decline below the oversold level of 30, suggesting an imbalance between buying and selling forces.
MACD (Moving Average Convergence Divergence): The MACD histogram has dropped to levels not seen since July 2024, indicating a persistent downward acceleration without giving buyers an opportunity to regain control.
The alignment of these indicators suggests a significant acceleration of the bearish trend, which may lead to a standardization of bullish corrections in the short term.
Key Levels:
By Julian Pineda, CFA – Market Analyst
Additionally, companies such as Amazon, Nvidia, and Microsoft have seen declines between 3% and 5% in recent sessions, reinforcing the bearish pressure on the Nasdaq due to their heavy weighting within the index.
Momentum Accelerates
With the strong downward bias currently present in the chart, selling pressure has been able to break through the support level at 19,700 points. However, the rapid price acceleration is beginning to have a significant impact, which could lead to short-term bullish corrections.
Oversold Indicators
Bollinger Bands: The bearish momentum has broken below the lower Bollinger Band, which could indicate a high acceleration in recent price movements.
RSI (Relative Strength Index): The RSI line continues to decline below the oversold level of 30, suggesting an imbalance between buying and selling forces.
MACD (Moving Average Convergence Divergence): The MACD histogram has dropped to levels not seen since July 2024, indicating a persistent downward acceleration without giving buyers an opportunity to regain control.
The alignment of these indicators suggests a significant acceleration of the bearish trend, which may lead to a standardization of bullish corrections in the short term.
Key Levels:
- 18,800 points – Near-Term Support: This level corresponds to lows not seen since September 2024. Persistent trading below this level could further accelerate the strong downward bias currently present in the chart.
- 19,700 points – New Resistance Zone: This level aligns with the lower Bollinger Band, which may serve as the area where potential bullish corrections could take place in the short term.
- 20,500 points – Distant Resistance: A neutral zone that has been tested by price movements in recent months. A sustained rally back to this level could challenge the current bearish sentiment prevailing in the market.
By Julian Pineda, CFA – Market Analyst
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.