Nasdaq – Bears pause after nearly 10% drop last week

The Nasdaq is consolidating above a fresh multi-month low at 16,463 — its lowest level since January 2024 — after suffering steep losses over the last three sessions and a nearly 10% drop for the week.

Some partial profit-taking amid deeply oversold daily conditions is providing a pause, allowing room for consolidation and potentially setting the stage for fresh downside, as long as the broader negative fundamentals continue to weigh on sentiment.

This week’s gap-lower open, combined with last week’s close below the base of the thick weekly Ichimoku cloud, reinforces the bearish outlook. However, stretched daily indicators suggest that sellers may take a breather in the near term.

Initial resistance levels at 17,278 (Fibo 23.6% of the 20,346–16,330 fall) and 17,415 (weekly cloud base) remain intact, guarding key upside levels at 17,865 and 18,338 (Fibo 38.2% and 50%, respectively), which are expected to cap stronger rebounds and maintain the broader bearish trend.

On the flip side, a break above these levels would signal a more significant recovery and open the door to a deeper correction.

Res: 17278; 17415; 17865; 18338
Sup: 16342; 15700; 14949; 14063