The NASDAQ 100 has officially entered correction territory, now trading more than -10% below its most recent high. Even more concerning: it's just 5% away from a full-blown bear market, which is defined as a drop of -20% or more.
As seen in the chart, we’ve broken below the -15% threshold and are rapidly approaching the critical 18,113 level, which would mark the -20% mark. If price action fails to hold the current level and momentum continues downward, we could be on the verge of a major shift in market sentiment.
If the bear market threshold is crossed, it may trigger panic selling or forced liquidation.
We should prepare for increased volatility and monitor this level closely. A bounce here could be a buying opportunity — but a breakdown could open the door to a deeper downturn.
Will buyers step in... or are we heading deeper into bearish territory?
As seen in the chart, we’ve broken below the -15% threshold and are rapidly approaching the critical 18,113 level, which would mark the -20% mark. If price action fails to hold the current level and momentum continues downward, we could be on the verge of a major shift in market sentiment.
If the bear market threshold is crossed, it may trigger panic selling or forced liquidation.
We should prepare for increased volatility and monitor this level closely. A bounce here could be a buying opportunity — but a breakdown could open the door to a deeper downturn.
Will buyers step in... or are we heading deeper into bearish territory?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.