The selling of the NASDAQ index has intensified with a new low being made at 11596.23. The current prices trading at 11625.
Looking at the hourly chart above, the move to the downside has taken the price back below swing highs from June 27 and July 8 between 11677 to 11688 (see red numbered circles and yellow area). The price is also approaching the rising 100 hour moving average currently at 11556.22. That will be a key target and bias defining level for buyers and sellers on the downside
The high price from last week stalled at 12093.02. That high was short of the 38.2% retracement of the move down from the March 30 high at 12124.17. The inability to get above that minimum retracement level is a problem if the buyers are to take more control. That helped to give the sellers the go-ahead to push to the downside
Keeping hopes alive for a bounce is that on July 19, the price bounce off the converged 100 and 200 hour moving averages. If the 100 hour moving average can hold support again, and climb back above the 11677 – 11688 area, there would be hope for a resumption of the upside corrective price action. Absent that and a break of the 100 hour moving average would have traders retargeting the lower 200 hour moving average at 11328.86.
Of important note is major tech heavy stock earnings will be released over the next few days including Microsoft and Alphabet today. Tomorrow, Meta will report and on Thursday Amazon, Apple, Intel will all report.
