Yesterday’s sharp Nasdaq drop was surprising, especially considering Nvidia’s exceptional earnings, renewed confidence that we’re not in a bubble, and the strong labor data from NFP. Under normal conditions, the market would likely have reacted with a 2%+ rally.
However, investors are now pricing in the idea that the Fed will not cut rates in December, which created fear-driven selling and an exaggerated move to the downside.
Today, I would like to see a relief recovery, as the index has started to form a double-bottom pattern, a typical structure before liquidity grabs to the upside. If confirmed, price could push back up to take out recent highs.
Historically, after large impulsive drops, the stock market tends to open in green, as investors take advantage of discounted prices. If momentum shifts, the Nasdaq could quickly reclaim lost ground.
However, investors are now pricing in the idea that the Fed will not cut rates in December, which created fear-driven selling and an exaggerated move to the downside.
Today, I would like to see a relief recovery, as the index has started to form a double-bottom pattern, a typical structure before liquidity grabs to the upside. If confirmed, price could push back up to take out recent highs.
Historically, after large impulsive drops, the stock market tends to open in green, as investors take advantage of discounted prices. If momentum shifts, the Nasdaq could quickly reclaim lost ground.
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إخلاء المسؤولية
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.