Nasdaq index bounces after a successful test of the 200 day MA

Yesterday, the NASDAQ fell outside a consolidated range going back to November.

I wrote about it in this post here:

In that post, I outlined the 200-day MA as a key target (see yellow box) saying “A hold above this level could slow the selloff”. .

Today, the price got within sniffing distance of that 200-day MA and the decline did slow and there has been a bounce higher.

The price has moved back above the broken 38.2% of the move up from AUgust 2024 low at 18487.09, and also the swing low from November 15 at 18595. Both those levels will now be eyed as support. If the price can stay above those levels, the buyers are “in play”. If the price moves below that level, it would not be good technically.

On the topside, the low of the Red Box comes in at $18,831. Getting above that level is needed to advance the correction idea more and give buyers more confidence.

This article was written by Greg Michalowski at www.forexlive.com.