Nasdaq was sharply lower after Wall St opening and hit new two-week low at 6888 on Monday, marking total loss of over 2% for the day, so far.
The index was dragged lower by strong fall of Facebook shares which were down over 5% on Monday.
Fresh bearish acceleration weakened structure of daily techs, as bears broke below initial supports at 7009 (10SMA) and 6929 (20SMA) and momentum breaking into negative territory.
Bears eye target at 6852 (Fibo 61.8% of 6645/7187 upleg), as extension of current wave C of five-wave sequence from 7187 (13 Mar high), cracked its FE 100% at 6891, validating wave principles.
The wave could travel to its FE 138.2% at 6817 on firm break below 6852 pivot, with stronger bearish acceleration capable of extending towards 6722 (FE 161.8% of wave C from 7084 lower top).
Broken 20SMA marks initial barrier with broken 10SMA (7009) expected to keep the upside protected.
Res: 6929; 6964; 7009; 7042
Sup: 6852; 6817; 6798; 6722
