Nasdaq index reprsents a major opportunity for those who love volatilty. The index was down nearly 5% yesterday
It is all about NASDAQ today as the tech giant index took a beating yesterday. Apple and Amazon are the heavyweights of the Nasdaq 100 index and both stocks were brutally sold off yesterday. The NASDAQ 100 index’s 30-day volatility has surged to a level which we have not seen since 2011 and this has alarmed many investors. Higher volatility means bigger moves and presents more opportunities for day traders.
In terms of technical analysis, on a daily time frame, the price has dropped below the 50, 100 and 200-day moving averages (50 in pink, 100 in green and 200 in yellow respectively). This confirms that the bears are strongly in control of the price. Also looking at the recent trading action- yesterday’s candle, it appears that the sell-off has more room to go because we are still far off any major support. Hence, the odds of the price breaking the 7000 mark high. Moreover, the price has made lower highs (shown by the two circles on the chart) and as long as we do not break these resistance levels, the trend will remain to the downside.
