The Nasdaq 100 fell -3.8% yesterday, during its second worst session since February 2020. 91 of it stocks declined, led by Fortinet ‘s -13.1% drop after the company announced it will cease operations in Russia. But more crucially, the Nasdaq has now fallen -20.1% from its record high on a closing basis which places it within a technical bear market. To reverse that status, a 20% rally needs to occur from a respective swing low. But with rising energy prices and fears of stagflation alongside rising interest rates, it is difficult to make a strong bullish case unless the Fed comes to the rescue with a ‘Fed put’.
In today’s video we look at drawdowns from the Nasdaq’s record highs, to see how deep bear markets and corrections have been. We also take a quick look at Apple and Microsoft, as these heavy weight stocks likely hold the key as to whether the Nasdaq will bounce from, or crash through, 13,000.
Nasdaq 100 trading guide
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