Changes in the NASDAQ 100 Index. From April 12 to April 19, a selloff in the NASDAQ 100 Index led to a decline of over 7%, sparking interest in buying this week. Investors believe the price drop presented an opportunity to purchase stocks at a lower cost.
RSI Indicator Dynamics. The index's rebound corresponds with the RSI indicator on the daily chart bouncing back from the oversold area (below 30). Nevertheless, the pullback in April can be seen as a normalization after a period of being overbought.
Fear and Greed Index remains in the “fear” zone, with a low last week of 32, before recovering to 40. Last year’s similar stock market adjustments lasted three months, including periods of sentiment improvement, as part of the overall downward trend.
Current Situation and Expectations. The NASDAQ 100 Index fell by approximately 1.2% on Wednesday, with futures dropping from the high to the low by 2% within 8 hours. According to macroeconomic reports, the 17700 level could lead to a repeat of last year's market patterns and months of corrections.
Potential Downside Targets. The area around the 200-day moving average, breaking through 16300 and pointing upwards, could be a potential downside target. There are more support opportunities within the 15800-16000 range. The market encountered significant resistance in July 2023 and fell back to an upward position in November.
