February 4, 2023

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Nasdaq rebounds but still below 100 day MA

1 min read

That was an interesting first 30 minutes

The NASDAQ index opened sharply lower and traded as low as -294.19 points or -2.2%. Buyers entered and pushed the price back higher to a high change still in the red, but only down -84.7 to points or -0.63%.  The index currently trades as I type down around 130 points or -1.00%. 

That was an interesting first 30 minutes

Technically, the price fell below a rising trend line at around the 13250 level, but is currently trading above that level at 13271.  

Also of note from a technical perspective is that the price closed just below its 100 day moving average yesterday (currently at 13423.63).  That was only the second close below the 100 day moving average in 2021 (there has been 6 days in 2021 when the price has traded below the 100 day moving average).  Stay below the moving average level and the bears are more in control. 

At the lows today, the the NASDAQ index traded down -7.77% from the high.  A 10% move would take the price near the March 25 low around 12796.  That is also near the 38.2% retracement of the move up from the September 21, 2020 swing low.

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