The Nasdaq 100 had a really bad day, finally, on Friday and a host of the big cap favorites helped to take it down. Analysts pointed to the lack of interest rate cuts and to the Middle East as the reasons, but the index has been overdue, to put it mildly, to correct some of the recent powerful rally.
After coming off of a late October 2023 low, the Nasdaq 100 had seemed almost unstoppable right up until late March of this year when it began to ease up and cool out. This week’s selling took the index to below its 50-day moving average for the first time since November 2023.
The daily price chart for the Nasdaq 100 looks like this now:
You can see that the price has closed 5 days in a row below what had been an up trending 50-day moving average. The early January low of about 16250 may be the target for this sell-off — that’s the previous support level where buyers overcame sellers. The 200-day moving average is up trending but for how long?
Key component Apple’s
AAPL
The stock peaked in December up above the $198 level and now trades at $165 for a 5-month slide of 16.67%. The 50-day moving average crossed below the 200-day moving average in mid-March and Friday, the price dropped to below the late October low. Note that the last 5 days have all been down sloping red bars, signifying selling.
The daily price chart for Meta is here:
This Nasdaq 100 component slid to below its 50-day moving average and, for the first time in months, closed there. Now below the early April lows, where does it go now? The first, most obvious target is the huge gap up zone from $450 down to $400. The 200-day moving average is up trending at $368.
The NVIDIA
NVDA
DIA
Yet another of the index favorites now showing a close below an up trending 50-day moving average on good volume. That mid-February gap up from $650 to $750 may be the target if there’s continued selling. The 200-day moving average is up trending without a problem, so far.
Here’s the Tesla
TSLA
The stock this week took out the mid-March support levels and kept going lower. That’s 6 straight red bars of selling. The peak on this chart was in September at $280 and Tesla now goes for $147, a 47% drop from then to now. Both the 50-day and the 200-day moving average are in down trends.
More price chart analysis and commentary at johnnavin.substack.com.
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