CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

📉 US100 plunged below 15,000 pts

07:52 21 January 2022

🔽 Tech sell-off continues, Netflix drops 20% on earnings

What looked like the beginning of a recovery rally, quickly turned out to be another dead cat bounce. In spite of US indices gaining slightly at the beginning of yesterday's Wall Street session, moods quickly deteriorated and US stocks took another hit. There are a few reasons that have contributed to the drop in equity markets

  • Continued pick-up in US yields and growing risk of Fed removing excess liquidity

  • Netflix (NFLX.US) plunged 20% in after-hours trading as Q4 2021 subscriber figures disappointed and forecast for Q1 2022 was seen as unambitious

  • Cryptocurrencies joined tech sell-off with Bitcoin dropping below $40,000

  • A large number of single stock option contracts expires today what may have forced dealers to hedge positions and in turn magnify recent moves in the markets

Taking a look at the Nasdaq-100 (US100) chart, we can see that the index plunged below the psychological 15,000 pts area and continues to move lower. Index broke below the lower limit of the Overbalance structure at 14,975 pts and 200-session moving average (purple line), signalling that more weakness may be ahead. The next support zone to watch can be found at the 23.6% retracement of the post-pandemic recovery move in the 14,420 pts area.

Start investing today or test a free demo

Open real account Try demo Download mobile app Download mobile app

Source: xStation5

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XIII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

Back