LIVE MARKETS-Nasdaq composite bounces off some big support

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NASDAQ COMPOSITE BOUNCES OFF SOME BIG SUPPORT

At its low on Monday, the Nasdaq composite .IXIC fell to 14,784.03, putting it down 26.7% from its December 16 record closing high.

With this, the tech-laden index tested, as well as neared, some big support levels in the 14,000s:

There is a descending weekly Gann Line from the November 2021 high, which comes in around 14,800 this week. This line contained weakness in April 2024.

The 200-week moving average (WMA) is now around 14,600, and the support line from the March 2020 pandemic panic trough is now around 14,570.

The 233-WMA is now around 14,400, and the support line from the March 2009 Financial Crisis trough is now around 14,125.

The support line from the 2009 low contained the Nasdaq's 2021-2022 bear market.

Amid heightened volatility, the composite surged as much as 10% off Monday's intraday low into a 16,292.28 intraday high. That bounce, however, stalled just shy of the 38.2% Fibonacci retracement of October 2022-December 2024 advance which is now acting as resistance at 16,340.36. The IXIC then settled at 15,603.26, posting a tiny rise of 0.1% on the day.

Now on Tuesday, e-mini Nasdaq 100 futures NQcv1 are jumping around 400 points, or more than 2%, suggesting the composite is poised for further recovery at the open.

On a push above 16,340.36, the IXIC would face the 89-WMA, which is now around 16,635.

Bulls will want to see the March 31 and March 10 lows at 16,854.37 and 17,238.24 overlapped to suggest the recovery is potentially more than just a quick counter-trend bounce.

(Terence Gabriel)

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