NAS100 extends declines as death-cross & tarrifs collide
- NAS100 down 25% from all-time highs, lowest since January 2024
- China's tariffs on US goods raised to 84%, effective April 10th
- FOMC minutes release today, may trigger volatility
- Death cross forming on the NAS100 daily chart, signaling further declines
- Fibonacci levels and RSI suggest potential resistance and more downside
Did you know the NAS100 has plummeted to levels not witnessed since January 2024?
This tech-heavy index has now dropped over 25% from its all-time highs, largely fuelled by mounting fears of a global recession triggered by President Trump’s announcement of reciprocal tariffs on April 2nd.
These worries have only intensified as both the EU and China prepare to impose even harsher retaliatory measures against the United States.
As of today, Trump's tariffs went live, and China has raised tariffs on US goods to 84%, effective Thursday, April 10th.
NAS100 may see added volatility when FOMC meeting minutes are released today at (18:00 PM GMT).
Note: Over the past 12 months, the FOMC minutes have triggered upside moves on the NAS100 of as much as 0.9% or declines of 1.1% in a 6-hour window post-release.
From a technical standpoint, the outlook appears grim.
A potential 'death cross' is forming on NAS100, a phenomenon where the 50-day moving average crosses below the 200-day moving average, signaling a strong likelihood of prolonged declines.
Furthermore, it has met resistance at its 261.8 Fibonacci level (17,739.8) for 2 straight trading sessions, increasing the probabilities of the index’s” decline to new intraday lows.
The Relative Strength Index (RSI) shows that the NAS100 is currently oversold, but there remains ample room for further downside, as levels have yet to reach those seen during the 2008 global financial crisis.
The Index bears may pay attention to the following levels for potential resistance levels:
- 17,739.8 – 261.8 Fibonacci level
- 19,235.1 – 21-day simple moving average
- 19,473.8 – 161.8 golden Fibonacci level
NAS100 bears on the other hand may observe the following levels for potential support:
- 15807.5 – significant price level
- 14934.2 – 423.6 Fibonacci level