Nasdaq 100 gives up 7% at 7393 hitting the lowest level since January 2019 in early trading as President Trump failed yesterday to calm markets on the coronavirus economic slowdown. The Nasdaq has lost almost 25% since the all-time highs that hit on February 19th and official enters today the bear market territory. Investors worry that monetary and fiscal policy measures can’t turn around the global economy given the restrictions on travel, daily life, and business. World Health Organization announced yesterday the spreading coronavirus a pandemic, adding to already fragile sentiment.
The Vix Index a measure of the fear in Wall Street is 22.52% higher at 66.04 showing the extreme levels of fear that is running now among investors.
The ECB joined Fed and BAC in monetary measures announcing a wide package of bond purchases and cheap loans aimed to combat the economic shock of the coronavirus and supporting the EU’s banks.
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Nasdaq 100 Index Support and Resistance
Nasdaq started the day with a huge gap down as the markets officially enter the bear market territory. The index has entered oversold levels and also is trading outside the Bollinger Bands, so a bounce from those extreme levels can’t be ruled out despite the bearish momentum.
On the downside, Nasdaq immediate support will be met at 7,279 today’s low. Next critical support stands at 7,068 the low from January 30, 2019. In case of further pressure, the next support area is at 7,007 the low from January 29, 2019.
On the flip side, initial resistance for the index will be met at 7,480 the daily high. The next resistance level stands at 7,810 the low from yesterday’s trading session. More offers might emerge at 8,185 the high from yesterday’s trading session.
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