The NASDAQ has now completed a Double Top formation, beginning on 30th October and completing on 28th January. After this week’s losses, the market is sitting directly on a major support zone where the 200‑day M/A intersects with long‑term trendline support at 24,246.
This is a critical line of defence. Buyers need to aggressively defend this area. If they fail, sellers — sensing weakness — will push the market lower toward the Double Top target at 21,550.
When we step back and look at the very long‑term chart, momentum, RSI, and stochastics all favour a move lower. However, this designated support zone suggests that initially, buyers will be there holding the line. Historically, you never sell the first break of a major support level combined with the 200‑day M/A.
Stops and algos will be selling lower levels, so confirmation of a deeper move only comes on a second break of this zone.
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