Nasdaq dips 2.5% as sales in tech sector resume after extended holiday weekend
The Nasdaq resumes steep fall on Tuesday (so far down over 2.5% for the day), holding firmly in red for the fourth straight day.
Bears took a breather after Friday’s strong downside rejection (mainly due to end-of week profit-taking) and quiet trading on Monday as the US was shut for holiday.
Today’s sharp acceleration lower signals an extension of pullback from new all-time high (12465, posted on 2 Sep), which was sparked by heavy sales in tech sector.
Traders remain in the same mood at the first day after extended holiday weekend and sold Tesla and other tech heavyweights, keeping strong negative sentiment.
Persisting US/China tensions and rising concerns about post-pandemic economic recovery, added to bearish pressure.
Fresh weakness retested Friday’s spike low and cracked important Fibo support at 11128 (61.8% of 10302/12465 upleg), with firm break here to expose supports at 11003 (rising 55DMA), 10844 (11 Aug higher low) and 10665 (top of rising daily cloud).
Sharp falling momentum indicator probes into negative territory on daily chart and 5/10/20DMA’s turned to bearish setup, adding to negative signals, however, bears continue to face headwinds from important Fibo support at 11128 and may extend consolidation before resuming.
South-heading weekly indicators show a plenty of room for deeper correction.
Res: 11383; 11430; 11638; 11719
Sup: 11128; 11003; 10844; 10665