Tech stocks refocused today as early hope was lost. Nasdaq futures erased early gains near flat levels, but regained some ground today. Tesla’s drag was an important talking point yesterday as tech stocks beat the Nasdaq falling close to 4% at some point. The chart doesn’t paint a good picture that the index has dropped more than 20% now since the beginning of the year.
Nasdaq Daily Chart – Down More than 20% in 2022
The MAs have been fighting for the Nasdaq
Support from the 38.2 retracement level @ 12,552 is the key to watch this week as March 2021 is low at 12,397 which adds some additional downside buffer. But destroy that region and things could get worse and in that situation, I don’t see how that won’t spillover and affect broader market sentiment. Needless to say the markets are very volatile. There are a number of revenues to be released after closing along with Meta, Ford, PayPal, Qualcomm, Pinterest, servicenow.
Twitter Daily Chart – The 200 SMA Acting As Resistance
The 200 SMA became the bottom support