Free Trial

Selling Pressure Grows As Nasdaq Breaks Below 200DMA Support

US
  • Tech stocks, which have strongly benefited from the surge in liquidity since March 2020, have been experiencing greater volatility in the past 2 months.
  • Nasdaq composite (CCMP Index) broke below its 200DMA yesterday and is down approximately 9% since the start of the year.
  • We previously saw that the dispersion between stocks’ performance has been rising in the past few months; 40% of Nasdaq companies were now down over 50% in the past twelve months in the beginning of January.
  • Hence, investors have been questioning themselves if growth and tech stocks could continue to reach new highs this year as liquidity dries up.

Source: Bloomberg/MNI

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.