The futures contract on the US Nasdaq 100 index (US100) is down more than 1% today, falling toward the 23,200-point area. The US dollar is strengthening at a pace not seen since July, while the market awaits the release of the ISM Manufacturing report for August at 2 PM GMT. Selling pressure dominates the contract, with the declines driven mainly by the "Mag7," where after strong earnings across all major companies and a somewhat “mixed” report from Nvidia, profit-taking is evident.
Looking at the chart, a potential head-and-shoulders (H&S) pattern appears to be forming, with key support around the 23,000–23,200-point range (the neckline). Seasonally, September is among the weakest months for stock indices, and following a very strong summer rally, investors are entering the “autumn period” with some caution. A break below 23,000 points could pave the way for another significant downward move, while a move above 23,600 points would negate the bearish formation.
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Source: xStation5