To The Moon

In a nail-biting turn of events, the $NASDAQ(.IXIC)$ has taken a perilous plunge, sending shockwaves through the stock market. As the index hovers on the brink of disaster, experts are sounding the alarm bells, warning that the very foundation of the tech-heavy market is trembling.

The Nasdaq's recent freefall, losing a staggering 1.2% in a single session, has set off panic among investors who had become accustomed to the seemingly unstoppable ascent of technology stocks. But now, with the index firmly entangled in a bearish stranglehold, the sentiment has taken a somber shift.

As if that weren't enough, the specter of inflation looms menacingly on the horizon. The Federal Reserve's future interest-rate moves are likely to be guided by the forthcoming consumer-price index data, leaving investors in a state of apprehension. If the CPI data reflects a surge in inflation, the market could be in for a rough ride, and the Nasdaq's precarious position might just be the catalyst for a larger market correction.

Adding to the chaos, tech behemoths like $NVIDIA Corp(NVDA)$ and $Apple(AAPL)$ are not spared from the turmoil. Nvidia, a once-reliable growth stock, has seen its value plummet by nearly 5%, while Apple has stumbled by 1.32%, further contributing to the ominous atmosphere.

The situation is eerily reminiscent of the dot-com bubble burst of the early 2000s, where the Nasdaq Composite suffered a monumental collapse. Could history be repeating itself? The rapid decline coupled with the failure of once-promising startups like $WeWork(WE)$ raises questions about the overall health of the tech sector.

It's crucial to note that the Nasdaq's fate is inherently tied to the health of the broader economy. With China's economy teetering on the brink of deflation and concerns growing about a global economic slowdown, the Nasdaq's retesting of a crucial support level might just be the first domino to fall in a chain reaction of financial turmoil.

Source: TradingView

From technical analysis perceptive using $Invesco QQQ Trust-ETF(QQQ)$ chart, we urgently need to see a strong bounce in the coming days. Otherwise, there will most likely be further correction downwards.

Investors are urged to brace for impact as the market grapples with uncertainty. The once-unstoppable Nasdaq is facing a watershed moment, and the outcome remains uncertain. As the index retests its critical support levels, the fate of the tech sector hangs in the balance, and investors are left wondering if this is the beginning of a larger market correction or a mere blip on the radar.

Disclaimer: This post offers insights and should not be considered as financial advice. Always conduct thorough research before making any investment decisions. [Observation]