05 Aug, 2024
Nasdaq 100 rout intensifies
At one point this morning the Nasdaq 100 was expected to open 1000 points lower in the cash session.
The index has gapped lower, and is now trading below the 200-day SMA for the first time since March 2023. All gains since the beginning of May have been wiped out. April’s low around 17,000 is the next target. Below this comes the January low at 16,177.
Any recovery needs to hold above the 200-day, and then close the gap created this weekend with a move back above 18,300.
Dow under pressure
For now the index is holding above 39,000, though it too has given back all the gains made in July.
The price is sitting right on trendline support from the April low, and a close below this would open the way towards 38,000 and the 200-day SMA.
In the short-term buyers will want a rebound back above 39,500, but with such huge losses around the globe for other indices this may only be a pause for breath before another drop.
Nikkei 225 nosedives
The falls have only intensified for this index, as the index plunges to its lowest level since November.
All gains for the year have been wiped out. It is seems almost impossible to believe the index was trading at a record high less than a month ago, and around 11,000 points higher than its current level.
Such a move rarely stops in one day, and we are likely to see further volatility for the moment. A close below November 2023’s low at 30,383 and below 30,000 would likely trigger even more selling.
