Nasdaq 100 started with heavy losses giving up 4.81% at 6980 as the monetary and fiscal stimulus from central banks and governments around the globe failed to calm investors worried about coronavirus outbreak impact in the economy.
Crude oil takes a hit on the chin as the price dropped to levels that we haven’t seen since 2003 as the global demand slumps amid the coronavirus outbreak.
Travel and entertainment stocks are among the biggest losers as the travel restrictions spread around the world. Red Rock Resorts Inc. is 48.35% lower at 2.98, Avis Budget Group Inc. is 40.08% lower at 7.28, and National CineMedia Inc. is 34.87% at 1.77.
Nasdaq 100 is under heavy selling pressure as investors dump risky assets and liquidate portfolios in a run for the safe-haven cash. The index now is hovering into the bear market territory. The technical picture is bearish, and investors see any rebound as a selling opportunity.
On the downside, first support for the Nasdaq will be met at 6,902 today’s low. More bids might emerge at 6827 the low from yesterday trading session. The next support area stands at 6,555 the low from January 4, 2019.
On the other side, immediate resistance for the index will be met at 7,182 the daily top. Next hurdle to the upside stands at 7,422 the top from yesterday’s trading session. More offers will be met at 7,710 the high from March 12th, trading session.