Nasdaq breaks 23,000, leads downside as US indices continue to slide

Following our Monday article on the ongoing profit-taking currently happening in Tech related assets, access our updated analysis on the Nasdaq.

The current open continues the bloodshed in the Nasdaq, down 1.33% after yesterday’s 1.50% performance.

The upward channel reaching its top had appeared as a technical hurdle to pursuing an upside, but this down move looks like more is happening.

Positioning had attained an extreme on the long side, as evidenced by the put-call ratios.

This is typical when such a relentless uptrend bulls through multiple All-time highs, elevating tech-related stocks to some overbought levels.

A bigger theme might be into play here: With the US regaining some geopolitical credibility, some bigger 2025 trend reversal might start to play here (at least on the best performing yearly trends).

The Dow Jones is however holding pretty strong (despite being down small).

Read More: Nasdaq and tech sector open the week on cautious footing

The Daily bearish divergence continues to have its effect when looking at the current correction.

The May upward Channel is currently breaking, which may trigger further profit-taking flows.

The Daily RSI is also crossing below the neutral line, which prompt some interesting reactions.

The 23,000 Key pivot zone and psychological level is getting into play here, with the 50-Day MA not too far below (22,875).

A post-NFP rally analysis mentioned that despite a spectacular rebound after a huge dip, an appearance from Sellers within such a tight-bull channel may see some follow-through, with the most leveraged players starting to show some sign of hesitancy.

Let's take a closer look.

The Nasdaq keeps struggling as we speak and just breached the 23,000 psychological level.

A session close below this level may trigger some further mean-reversion selling.

However, deep oversold levels on the 4H RSI should at least trigger some pause into the ongoing selling – the rest is to see if dip buying occurs here or consolidation holds prices below the key level.

Zones of interest for Nasdaq Trading:

Resistance Levels

• All-time Highs 23,986
• 23,500 Support turned resistance
• 23,000 Key Pivot Zone

Support Levels

• 22,850 50-Day MA (immediate support)
• 22,700 Support zone
• 22,298 Early 2025 previous All-time highs

Safe Trades!

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