It’s pure chaos with Nasdaq futures down roughly 6% currently. Meanwhile, Dow futures are down just a little over 1% on the day. The AI boom has turned into a mini-bust now and the pain looks like it is set to run deeper.
Nasdaq Composite index daily chart
The Nasdaq not only broke its 100-day moving average (red line) after the drop on Friday but surely now is falling below the trendline support (white line) for the year.
If you take in the rally in the Nasdaq from 2022 to July 2024, that’s a whopping 85% jump during that period. If so, there’s still much more potential to any correction play. Even an additional 10% or 20% decline from here would look mild considerably. And that might be what we’re looking at next.