Nasdaq 100 Enters Correction

FXOpen

As shown on the Nasdaq 100 (US Tech 100 mini on FXOpen) index chart today:
→ The index has fallen below the psychological 20,000-point level, reaching its lowest in approximately six months.
→ The decline from the December peak now exceeds 10%, officially marking the start of a correction.

Why the Nasdaq 100 Is Falling Today

Bearish sentiment stems from a combination of factors, including (according to Zacks analysts):
→ The Trump administration’s tariff policies and their potential economic impact. Concerns increased after the latest jobs report showed unemployment rising from 4.0% to 4.1%.
→ Worries about AI investment costs and their long-term profitability.
→ Market anticipation of tomorrow’s Consumer Price Index (CPI) release at 15:30 GMT+3.

Technical Analysis of the Nasdaq 100 Chart

Price movements indicate that the steeper growth channel (marked in black), which had been in place since last August, has lost relevance. A broader view of the chart reveals that the index has now approached the lower boundary of a long-term channel (marked in blue), which has been forming since early 2024. Key price formations that helped define this channel are highlighted in orange.

Given that the index is at the lower boundary of the blue channel and the RSI indicator on the daily chart has dropped to multi-year lows, a short-term recovery may be likely. However, the fundamental backdrop will play a decisive role—clear signs of U.S. economic stability could support a rebound, while extreme fear (as reflected in CNN’s Fear & Greed Index) may continue to weigh on sentiment.

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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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