The 50% slowed the decline today
The Nasdaq index is still down -324 points or -2.34% on the day, but the low for the day did reach down to 13485.59, down -2.95% or -409.53 points.
That day low, dipped briefly below the 50% of the move up from the April 25th low at 13499.19. However, the price snapped back higher, and is trying to build off the low/50% level.
The trading is heading into the close of the day. Anything can happen, but the index is trying to build a base.
Looking at the correction off the high from April 29, the NASDAQ index has moved down 5.1% from the high to the low today. The price change moved down -726 points from a high of 14211.57 to the low today of 13485.59.
The correction is still rather modest. What would a more serious correction look like?
If 10% is a normal corrective move in a bull market, a move like that would take the price down to retest the low from April 25 at 12786 area.
What would keep the bearish bias in the index now?
The broken 38.2% of the same move higher comes in at 13667.31. Stay below that would keep sellers more in control. The 200 hour MA at 13719 currently would also continue to keep the sellers in play for further downside momentum. Move above each and we should see more buying momentum.
What earnings are after the close today?
- Zillow Group
The other ride sharing company Uber will announce earnings after the close tomorrow. Also on the schedule tomorrow includes:
- Rocket Companies
- Marathon oil