Dow, S&P 500, Nasdaq 100 Talking Points:
The Nasdaq 100 set a fresh eight-month-low yesterday, even as US equity markets were closed in observance of President’s day. As many had predicted, the day after the Winter Olympics finished in Beijing was also the first that Russia sent tanks into Ukraine, albeit under the cover of a ‘peace keeping mission.’
In the Nasdaq 100 – that low came from a gap-down at last night’s open in the futures market, which saw prices push below a key Fibonacci[1] level at 13,712 before bulls made a re-appearance around the European open. That led to a sharp move with prices pushing back up to the 14,059 level, which has remained in play since late-January, with another level of support along the way at 13,900.
That 14,059 level was support just last Thursday[2], as the Nasdaq 100 was brewing in a bear pennant[3] formation along with a symmetrical triangle[4]. The triangle was taken-out yesterday, pointing to the possibility of further bearish price action.
Nasdaq 100 Four-Hour Price Chart
Chart prepared by James Stanley[5]; Nasdaq 100 on Tradingview[6]
Nasdaq 100 Levels
The 13,700 spot is big as there’s a Fibonacci level nearby that helped to catch the January swing-low. This level has already been violated, so if bulls do pull up shy of re-testing the low, there could be a bearish bounce in store. Below that, the 13,600 level that held the overnight low remains relevant, after which 13,287 holds some allure for deeper support.
Longer-term, it’s the zone from 12,894-12,991 that looms large.
Nasdaq 100 Daily Price Chart
Chart prepared by James Stanley[7]; Nasdaq 100 on Tradingview
