NDX Recap

 

NDX100 daily chart showing that the Ichimoku cloud support has been decisively broken. This indicates serious downward pressure for some time ahead.

After staging a strong rebound, the NDX100 is re-testing the 150MA dynamic support. NDX100 was unable to touch the Fibonacci retracement levels 0.5 and 0.618 which forebodes a very weakened index. 

NDX100 5 mins chart

NDX100 opened red before bleeding further and eventually staging a partial rebound at 2230 (GMT+8). However, subsequently, the price attempted to test the crucial 12700 resistance two more times (having tested it twice the earlier trading day) and failed to break through. Being rejected twice, and having formed a bearish double top, prices broke the ascending triangle pattern and rapidly plunged with a gravestone doji being formed after midnight, foretelling an immense sell-out on Monday evening in New York.

The NASDAQ Composite closed 2.41% down losing 310 points, closing at 12609.16. The NDX closed at 12299, losing 369 points, or 2.92%. While the NASDAQ includes almost all stocks listed on the NASDAQ stock market, the NDX-100 lists only the top 100 largest non-financial companies on the NASDAQ stock market (making up 102 securities). With the NASDAQ closing at increasing downward velocity as we approach the end of the day, it is anticipated that technology stocks will face further sell-offs.

Upcoming pivots for the NDX include: $12200, $11800 dynamic support, $11000 and $9600. 

As for the NASDAQ Composite Index (IXIC), upcoming key levels are:$12400, $12000, $11800, $11000, $10500, $10250 and $9760.

NASDAQ Composite (IXIC) showing severe selling pressure

With the 20-year treasury bond fast approaching to test $136 again, it is anticipated that the tech sell-off can last another few days at least. At the next major support, the NDX100 will have lost at least 20%, making it the largest correction in recent months that the NDX has faced.