Thursday's Market Minute: /NQ At Critical Support After Major Technical Breaches

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Skies are rapidly darkening for equities, and some of the sharpest pain is in the tech sector. Nasdaq-100 futures broke downward through important technical levels this week and sent price tumbling -3.7% from Friday’s close to yesterday’s. Price earlier this month broke below the 15,700 level that represents September’s highs as well as support in the form of a double-bottom during December. Additionally, price also broke below a long-term trendline beginning in September, 2020 and connecting the lows since, which is worth considering as trendlines that have existed for a long time and have been successfully tested several times tend to hold greater importance. 

Bearish momentum continues to be on the rise according to the MACD and RSI, while the rising ADX suggests the downtrend may be strengthening. Price also closed below the lower Bollinger Band yesterday, which is typically viewed as bearish. However, bulls may be regrouping for a counter-attack today, as price touched the 200-day Simple Moving Average near 14,995 and bounced in the overnight session. Price also is in the thick of a major volume node according to the yearly Volume Profile, which also could suggest support.

A potential upside resistance point could be near the yearly -1 Standard Deviation Channel near 15,265. If things start to crumble again, there’s still at least one more major moving average to watch for support: the 252-day Exponential Moving Average, currently near 14,588.

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This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.