Nasdaq technicals
The Nasdaq Composite Index is experiencing continued downside pressure, moving further away from its 200-day moving average (MA) at 18,404. The index is now approaching the 38.2% Fibonacci retracement level of the rally from the November 2024 low, which comes in around 17,284. This level will be a key technical test for buyers looking to defend support.
At today’s low, the index fell 3.52%, nearing the largest daily declines of 2024, which ranged between -3.26% and -3.64%. Will the declines start to slow? So far, there is not a lot of bounce.
If selling pressure persists and the 38.2% retracement level fails to hold, it opens the door for increased selling momentum. The next major downside target would be the 50% retracement at 16,382. The last time the index traded at that level was back in August 2024
For an upside recovery, the Nasdaq index must ultimately reclaim the 200-day moving average (MA) at 18,404 to shift momentum back in favor of buyers. However, a nearer-term resistance zone lies between 17,832.70 and 18,086.83 (highlighted in yellow on the 4-hour chart). This area has acted as both support and resistance since July 2024, making it a key hurdle for buyers. A breakout above this range would provide some bullish confidence, though further gains would still be needed to challenge the 200-day MA. Until then, sellers remain in control, with downside risks persisting.
The Nasdaq is now down -13.3% from the December high.