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8:49 AM · 28 January 2022

Chart of the day - US100 (28.01.2022)

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Release of a solid earnings report for Q4 2021 by Apple yesterday after the close of the Wall Street session failed to provide a lift for the tech sector. While indices rebounded somewhat during the Asian trading, another wave of selling arrived at the launch of the European cash session today. As a result, Nasdaq-100 (US100) is once again trading in the 14,000 pts area. Outlook for quicker and more meaningful tightening from the Fed is putting pressure on stock markets with tech shares and small-caps being hit harder than other stocks.

Recent sell-off on US100 has been very steep and some investors may not realize how big it was. The index dropped almost 3,000 pts during the past month! To put this figure into context, let us remember that during the Covid panic in early-2020 the index dropped around 3,100-3,200 pts over the course of a month! Of course, this time US100 was dropping from a higher level and a drop amounted to around 18%, while drop in early-2020 amounted to around 32%. In case the index breaks below the support zone ranging between 13,900 and 14,150 pts, a downward move towards the lower limit of the Overbalance structure (range of early-2020 sell-off) cannot be ruled out.

Source: xStation5

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