NASDAQ Potential Retracement and Bearish ContinuationThe current price action shows the market pushing into significant supply zones. We can identify both a 5-minute FVG (Fair Value Gap) and a 1-hour FVG in the area between 20,318 and 20,640, indicating potential for price rejection.
After this push into the FVG, I anticipate a retracement towards the 19,473 - 19,253 zone, which aligns with the Fibonacci retracement levels of 50% - 62%. A deeper pullback towards 79% (18,690) is also possible, supported by the presence of a 4-hour and Daily FVG below, suggesting an extended bearish move.
If price fails to hold these levels, the downside potential could be significant, targeting the 18,679 zone and potentially beyond. This scenario lines up with broader market conditions, where we could see a significant sell-off.
Bear in mind that further confirmation is needed on lower timeframes before entering short positions. A clean rejection from the 1-hour FVG zone will serve as the main trigger for this bearish continuation.