The Nasdaq Looks Like It Is Correcting To This Support Level Now

The Nasdaq had another down day, and it came after the biggest one day drop for it in two years. The next support level for the Nasdaq is its 50-day moving average, which is the blue line on the above chart.

It’s currently around $17400, but is slowly moving up, so if the Nasdaq can just sit here it will touch it later this month, or it could fall more and just hit it.

Now the S&P 500 and DOW are not falling as much as the Nasdaq has been, so it has been leading the market down.

It is big cap tech stocks that have been acting the worst in the past week.

So, look for them to bottom first.

Don’t listen to people calling this a stock market crash on Youtube, where people say anything to get the attention of the algo, because this is not a stock market crash and it is not crashing right now.

Nothing goes up week after week.

You get pauses and pull backs in markets all the time when they have a good year. In fact, every year the stock market typically retests its 150 and 200-day moving averages at least once, even in bull markets, but I don’t think that is going to happen this year, as it went to that point last October and is still very far away from it.

Before a real bear market comes we are likely to see a stage three topping process play out.

I’m not interested myself in the popular big tech stocks, though, I’m focusing on what is acting right now, and there is a rotation going on, because the macro environment is changing, with the November election and coming interest rate cuts.

Really, I already have my positions.