The NASDAQ, or also the US TECH 100 is mostly composed of tech stocks. Those are the most sensitive type of equities and have the strongest reaction to rallies and corrections. This is the main reason behind the massive 1400 points drop in the index since August. Last week the prices dropped bellow the 50 day moving average and the Williams Percent Range is closer to oversold grounds. This is a sign that many investors are shorting the NASDAQ now.

For the past 2 weeks however we notice the chart is forming a support level around 14 500. Looking back at the recent past, we see this same level was tested previously on the 18th of August, which completes the formation of a Double Bottom chart pattern. Please visit our Go Premium section to see what is our prefered price move for the next few days.