Nasdaq 100 Under PressureNasdaq 100 Under Pressure
As the chart shows, the Nasdaq 100 index fell today (point 3) to its lowest level in a month, making it the weakest performer among the major US indices. The sell-off in the technology sector has been driven by a double blow:
→ A reassessment of expectations for the Federal Reserve’s next rate move. According to market observers, the probability of a Fed rate cut on 10 December continues to decline and now stands at 43%, compared with 62% a week earlier.
→ Growing scepticism about the valuations of companies linked to artificial intelligence. A Bank of America fund managers’ survey revealed heavy overcrowding in tech: 54% cited “long Magnificent 7” as the most crowded trade, while 45% viewed an AI bubble as the biggest tail risk.
Technical Analysis of the Nasdaq 100 Chart
When analysing the hourly chart of the Nasdaq 100 on 10 November, we identified an ascending channel. However, mounting selling pressure has resulted in:
→ the channel being extended downwards;
→ its former lower boundary (which acted as support) now acting as the median line and serving as resistance.
From the demand perspective:
→ The lower boundary of the expanded channel may prevent a deeper bearish move.
→ The chart shows a sequence of false bearish breakouts (1–2–3), where the price dips slightly below the previous low only to reverse sharply upward — signs of a Liquidity Grab pattern that may indicate buyer aggression.
From the supply perspective:
→ The 25220–25415 zone appears to be a confirmed FVG area, where a clear market imbalance emerged and sellers strongly dominated.
Bulls may attempt to push the Nasdaq 100 back into the ascending channel, but whether this scenario plays out will largely depend on Nvidia’s quarterly earnings report — a key event for the technology sector, scheduled for release tomorrow.
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