Nasdaq 100 opened with a 200 points gap down as markets rattled by coronavirus worries after a rise in confirmed coronavirus cases in Italy and South Korea. The main Italian benchmark FTSE Mib is down 5.75% at 23338. WHO Director Dr. Tedros said the coronavirus has pandemic potential, but the coronavirus is not pandemic yet.
The United States Chicago Fed National Activity Index came in at -0.25, topping the forecasts of -0.92 in January. Investors ignored the positive news as their attention has turned to the coronavirus impact on the global economy.
Technology stocks are under heavy selling pressure, Amazon (AMZN) is 3.84% lower at 2014.84, Google (GGOGL) is 3.59% lower at 1430, Facebook (FB) is 4.02% lower at 201.70 and Apple (AAPL) is 4.20% lower at 299.90. Meanwhile the VIX index is 35.71% higher at 23.2.
Nasdaq trades 2.95% higher at 9,292 as the index return below the 50-day moving average for the first time since October 2019. The index started with a gap down piercing the ascending trendline which drove the index to multiple record highs. Today’s sharp move lower questions the bullish momentum.
On the downside, the first support for the Nasdaq 100 will be met at 9,166.01 today’s low. Next support area stands at 9,085 the low from January 27th. In case of a further pullback the next support area is at 8,940 the low from January 6th.
On the flip side, resistance for the Nasdaq will be met at 9,241 the 50-day moving average and then at 9322 the daily top. Next resistance will be met at 9,838 the all-time highs.