The Nasdaq 100 got crushed on Tuesday, as we have seen a massive amount of selling above the crucial 30,000 level again. This is the second time in the last few weeks we have seen this.
NASDAQ 100
The Nasdaq 100 has fallen apart during trading on Tuesday as traders continue to see a lot of volatility in general. That being said, there are a lot of questions as to where we go next, and quite frankly, it's also very possible that this is a market that just doesn't really know how to hold the massive valuations that some of the hottest companies currently have.
With that being said, we could continue to see downward pressure, perhaps sending the Nasdaq 100 down to the 50-day EMA. The 50-day EMA currently sits at roughly 28,750, and I think that is worth watching for a potential market reaction once we get there.
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Analyzing Potential Support and Market Volatility
Below, we have the 28,500 level, possibly offering a bit of a target as well. I would anticipate that there should be plenty of buyers in that area, and if we were in fact to slice through there, then I think the Nasdaq 100 has much further to go.
That would be a serious breach of support, and it might finally kick off the sell-off that I think a lot of people have been waiting around for. Whether or not that happens remains to be seen, but let's be honest, it wouldn't take much to have the market panic in an environment that is trying to price in the idea of peace.
This is the second time that we've seen a horrific candle form in this general vicinity. Clearly, the market is struggling to stay above 30,000. Because of this, we now have a big fight on our hands.
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