LIVE MARKETS-Nasdaq finds a floor, now comes the hard part

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

NASDAQ FINDS A FLOOR, NOW COMES THE HARD PART

The Nasdaq Composite .IXIC tumbled into correction territory last Thursday, ending 11.9% below its October 6 record closing high before quickly stabilizing. While the rebound has been encouraging, the chart still shows a pattern of lower highs and lower lows, suggesting the bulls have more work to do before they can claim the uptrend is back on track.

The selling pressure appeared to ease on November 5, when the Composite fell to 24,262.14 before finishing at 24,315. That close was just below a support line drawn from the April 2025 low, but still above the 50% retracement of the March-October rally at 24,206. Together, that area appears to have provided an important floor for the recent decline.

Momentum indicators were also flashing signs of exhaustion. The 14-day relative strength index ended that day at 30.06, essentially touching the traditional oversold threshold. It was the indicator's weakest reading since March 30, when the Nasdaq was completing a 13.2% correction from its then-record high.

Since then, the Composite has been working to regain lost ground. It ended Tuesday at 25,065.87, down 9.2% from its record close and just above the 38.2% Fibonacci retracement of the March-October advance at 25,036. The index also finished near its 200-day moving average, which ended Tuesday around 25,114.

With E-mini Nasdaq 100 futures up nearly 2% ahead of Wednesday's open, traders are looking for a stronger push through that area.

The next hurdle is clustered near 26,050, where the November 4 high and the 23.6% retracement offer resistance. Beyond that, the 100-day and 50-day moving averages sit near 26,182 and 26,405, respectively. A move above the November 4 peak would break the current pattern of lower highs, while reclaiming those moving averages could shift attention back toward record territory.

On the downside, a break below 24,206 would expose support around 24,000. Beyond that, the 61.8% retracement near 23,377 is the next significant level to watch. A decline to that area would leave the Nasdaq roughly 15% below its peak.

(Terence Gabriel)

*****

EARLIER ON LIVE MARKETS:

EUROPEAN RALLY GETTING STRETCHED SAYS SOC GEN CLICK HERE

“BORING BUT BOOMING” CLICK HERE

AN AI BOOST FOR THE STOXX CLICK HERE

BEFORE THE BELL: A GOOD DAY FOR A RECORD HIGH? CLICK HERE

EVERYONE LOVES COREWEAVE CLICK HERE