Nasdaq moves toward 50% retracement target

The Nasdaq index is trading down over 220 points on the day or -1.52% at 14395.

The index is off the low for the day but moving back to the downside as the day works toward the close. The low for the day reached 14383.45.

Looking at the daily chart, the low for the day stalled right near the 50% midpoint of the move down from the all-time high price reached on November 22. A move below that level would disappoint buyers who saw the price gap above that level yesterday on its way to a test of the falling 100 day moving average (blue line in the chart above). That moving average ended up stalling the rally yesterday, and today's high price was also below that key moving average level at 14633.41.

A move below the 50% would add to the idea that a top is in place for the index and the move higher is least in the short term. The next downside target would look toward the 14200 area where swing lows from July and October 2021 stalled corrective moves. Last week, (Thursday and Friday) there was a stall near the area as well before breaking higher on Monday.