The Nasdaq 100 experienced a significant drop on Friday, with analysts attributing the decline to factors such as the lack of interest rate cuts and tensions in the Middle East. The index had been overdue for a correction following a powerful rally that took place after late October 2023. This week’s selling pressure brought the index below its 50-day moving average for the first time since November 2023. The daily price chart for the Nasdaq 100 shows a downward trend below the 50-day moving average, with the early January low of 16250 potentially being the target for this sell-off.
Key components of the Nasdaq 100, such as Apple, Meta, NVIDIA, and Tesla, also experienced declines in their stock prices. Apple’s stock peaked in December at over $198 and has since slid by 16.67% to $165, with the 50-day moving average crossing below the 200-day moving average in mid-March. Meta, another Nasdaq 100 component, slid below its 50-day moving average for the first time in months and is now below the early April lows. The gap up zone from $450 down to $400 may be the next target for Meta, with the 200-day moving average trending upward at $368.
NVIDIA, another index favorite, also showed a close below an up trending 50-day moving average on good volume. The mid-February gap up from $650 to $750 may be the target if selling pressure continues. The 200-day moving average for NVIDIA continues to trend upward without any issues so far. Tesla, on the other hand, experienced six consecutive days of selling pressure, taking out the mid-March support levels. The stock peaked in September at $280 and now trades at $147, marking a 47% drop. Both the 50-day and 200-day moving averages for Tesla are in a downward trend.
Overall, the Nasdaq 100 and its key components have faced significant selling pressure, with many stocks trading below their key moving averages. The recent decline in the index was overdue following a strong rally, but factors such as interest rate cuts and geopolitical tensions have further contributed to the downturn. Investors are now watching closely to see where the next support levels may be for these key components, with potential targets for the sell-off being identified on their respective daily price charts. For more analysis and commentary on price charts, readers can visit johnnavin.substack.com.
