Nasdaq 100 Index fell 3% on Friday, Now what’s next?
- The market was caught off guard by Powell’s message, and now the Nasdaq is down 400 points, or 4%.
- The chart looks terrible, with the recent bounce disappearing into a wide space with no support.
I’d also say that virtually everyone (or at least the loudest ones) thought the July-August rally was a bear market bounce so there are a lot of sellers out there. With what’s happening in Europe and China along with some economic uncertainty and midterms starting to factor into the equation, there’s a case to be made.
I’m still optimistic about the US growth picture and I think the student debt forgiveness and ‘anti-inflation’ bill add to that case, but that’s not the way the wind is blowing right now and technically, a return to the below 11,000 is compelling.
