The Nasdaq-100 has fallen sharply in the last three weeks, but some traders may think the tech-heavy index is oversold.

The first pattern on today's chart is the sequence of simple moving averages (SMAs). The 50-day SMA is above the 100-day SMA and both are above the 200-day SMA. That may indicate the presence of a longer-term uptrend.

Second, NDX tested and held the 200-day SMA for the first time since the AI boom started in March 2023. Is this the kind of pullback long-term investors crave?

Third is the price zone around 17,284. It was the low in May and represents a retracement of about half the move between October’s trough and July's peak. Remaining at or above this area could suggest it's had a healthy pullback while remaining in an uptrend.

Finally, the lower study includes our Distance from MA custom script. It shows that the index ended Monday almost 8 percent under its 50-day SMA. That’s the furthest below that SMA since October 2022, shortly after the last bear market ended.

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