Technology has become a durable and leading sector or the global economy and stock markets.
And due to a concoction of mixed economic data, over-heated inflation, and rising interest rates technology stocks have been caught in the cross-hairs of a bear market.
Today, we turn to Joe Friday for, “The Facts, Ma’am. Just the facts.”
The chart below looks at the Nasdaq Composite on a long-term “monthly” timeframe with key Fibonacci levels.
As you can see, the Nasdaq rallied as high as the 423% Fibonacci extension level before reversing lower. That reversal has sent the Nasdaq sputtering down to an important/strong price support level at the 261% Fibonacci level (10,400).
IF this key Fibonacci support level fails to hold, prices could fall a considerable amount. The next Fibonacci support level is the 161% level near 7,000!
In my humble opinion, tech stocks are at an important crossroads. Stay tuned!!
Nasdaq Composite “monthly” Chart
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