Friday’s market bloodbath saw the Nasdaq fall almost 5%, sending shockwaves through global equity markets and leaving traders questioning whether this is the start of a much deeper correction.
From a technical perspective, the sell-off has so far respected the 23.6% Fibonacci retracement level, suggesting that the longer-term uptrend remains intact for now. However, the market is at a critical juncture.
The daily pivot point at 29,305 has currently capped any recovery attempts, making this a key level to watch as Wall Street returns.
The immediate question is whether buyers have the conviction to defend the current support zone or whether Friday’s selling pressure triggers a deeper correction.
Should the Nasdaq continue lower, I will be watching the following key support levels:
These are areas where I would expect buyers to become increasingly active, looking to accumulate positions after Friday’s sharp decline.
At this stage, I do not view the recent price action as a major trend reversal. Corrections are a normal part of any bull market. However, the next few trading sessions will be crucial in determining whether this was simply a bout of panic selling or the beginning of a broader risk-off move.
In this video I analyse the charts, key technical levels, market sentiment, and what traders should be watching as the week unfolds.
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