How Low Could the Nasdaq Go?The Nasdaq-100 has pulled the broader market lower since late February. What could be next for the tech-heavy index?
The first pattern to consider is the 20,315 level: its post-election pullback low on November 15. NDX slid below that price in early March and rebounded to stall at the same area last week. That could make some chart watchers think old support has become new resistance.
The index also peaked at its 200-day simple moving average (SMA), which may suggest the longer-term trend has grown more bearish. The falling 8- and 21-day exponential moving averages (EMAs) may paint a similar picture in the shorter term.
That combination of patterns, including a lower high at old support, could make traders expect a lower low. The September trough near 18,400 may be a logical place to look.
We’ll next consider two important charts impacting the Nasdaq.
First, Apple NASDAQ:AAPL made a potentially lower high at its falling 21-day EMA. It also stalled at a 50 percent retracement of a recent move. The 50-day SMA may be nearing a “death cross” under the 200-day SMA, as well.
Second, the Philadelphia Semiconductor Index NASDAQ:SOX closed slightly below its previous low from April. Does it face risk of a further breakdown?
If those two charts result in bearish price action, it may additionally keep pressure on NDX.
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