LIVE MARKETS-Nasdaq Composite: Now the 100-DMA takes its turn

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NASDAQ COMPOSITE: NOW THE 100-DMA TAKES ITS TURN

The three main U.S. stock indexes took their lumps on Monday. The Dow .DJI fell about 1.8%, while the S&P 500 .SPX slid 2.1%. The Nasdaq Composite .IXIC took the biggest hit; it tumbled 2.4%.

After failing to join the Dow and S&P 500 in fresh record-high territory in late 2025 and earlier this year, the Nasdaq ended Tuesday down 4.2% from its October 29 record close.

Traders are eyeing the charts closely given that both the S&P 500 and Nasdaq ended Tuesday's session below their 50-day moving average (DMA).

With this, the SPX neared its 100-DMA, while the Nasdaq finished just slightly above this longer-term moving average.

After hitting an intraday low of 22,916.83, the Nasdaq Composite ended at 22,954.32, which was just slightly above its 100-DMA, which ended at 22,933.63. Of note, the 100-DMA essentially contained Nasdaq weakness in late November. In fact, the Composite last closed below it on May 9, 2025.

Thus, bulls are looking for a bounce. However, e-mini Nasdaq 100 futures NQcv1 are lower by around 0.2% in premarket trading.

In the event of greater IXIC weakness, which takes out its 100-DMA and the December 17 low at 22,692, the next significant support is in the 21,898-21,803 area. This zone includes the November 21 low, at 21,898.29, the 23.6% Fibonacci retracement of the April 2025-October 2025 advance, at 21,840.31, and the August 13 high, at 21,803.75.

The rising 200-DMA ended Tuesday at 21,175.44.

On strength, the Composite would face an initial hurdle at its 50-DMA, which ended Tuesday at about 23,258 (Tuesday's intraday high was 23,236.05). If the Composite can forge back above its 50-DMA, Tuesday's gap would require a further push to 23,446.81 for a fill.

Filling the gap would suggest the IXIC is refocused on its 23,813.30 January 13 high ahead of its 24,019.99 October 29, 2025 record intraday high.

(Terence Gabriel)

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