Nasdaq on the Edge: Analyzing the Impending Correction

The Nasdaq Composite is on the verge of a correction, currently down 9.78% from its June peak. Technical analysis reveals vulnerabilities to further decline, with the index breaking key support levels. If Nasdaq surpasses its 100-day moving average again, the outlook could improve.

Following the recent U.S. Federal Reserve policy meeting, the Nasdaq Composite is nearing correction territory, indicating potential for further declines. The index is now down 9.78% from its June 2 peak, signaling vulnerability.

The index broke several critical support levels, including its 100-day moving average and crucial Fibonacci retracement levels, suggesting that the market could face additional downward pressure.

To stabilize, the Nasdaq must regain its 100-day moving average. Analysts remain watchful, as its ability to surpass this benchmark could alter the market's current negative trajectory.