Ion Jauregui – Analyst at ActivTrades
The Nasdaq 100 closed Thursday's session at 29,025.77 points, posting a decline of nearly 1.9% in a session dominated by profit-taking in the technology sector, particularly among semiconductor manufacturers. During the early hours of Friday's European session, the index is trading in the pre-market around 28,592 points, maintaining a bearish tone as investors continue to assess the ongoing earnings season.
The correction comes despite several leading companies linked to artificial intelligence reporting solid results. TSMC once again delivered strong growth driven by demand for AI chips, while Netflix exceeded earnings expectations, although its share price was pressured after issuing more conservative revenue guidance for the remainder of the fiscal year. The market is once again demonstrating that the technology sector's elevated valuations require not only strong earnings but also forward-looking guidance capable of justifying the substantial rally recorded over recent months.
From a technical perspective, the corrective move has pushed the index below its 50-session moving average, although it continues to find support at the 100- and 200-session moving averages, leaving the medium-term bullish structure intact for now. Nevertheless, the loss of the short-term moving average reflects a deterioration in buying momentum that should be closely monitored over the coming sessions.
Technical indicators also point to a cooling in momentum. The MACD has crossed below its signal line, while the histogram continues to develop in negative territory, confirming a slowdown in bullish momentum. Meanwhile, the RSI has declined to 41%, falling below the neutral 50 level without yet reaching oversold conditions, leaving room for a possible extension of the correction should market sentiment continue to weaken.
Volume analysis also provides relevant signals. The Volume Profile places the Point of Control (POC) within the range between 30,782.32 and 28,208 dollars, reflecting that this remains the area where the highest concentration of traded contracts is located. In addition, the profile shows a double volume concentration: a first area around 29,333 dollars, which could act as immediate resistance in the event of a rebound, and a second, much more pronounced node at 24,959.83 dollars, considered the market's main price acceptance level in a scenario of a deeper correction.
Investors' attention is now focused on the earnings reports that continue to be released throughout the day. Beyond headline profit figures, the market will closely analyse second-half guidance, margin trends and, above all, any comments related to artificial intelligence investment and demand growth. Following the market's reaction over recent sessions, it has become evident that merely beating estimates is no longer sufficient if companies are unable to raise future expectations.
Today's session will be crucial in determining whether Thursday's decline represents nothing more than profit-taking following the strong gains accumulated in recent months or, on the contrary, marks the beginning of a broader consolidation phase within the technology sector. With valuations still demanding and the earnings season entering its busiest stage, volatility is expected to remain the dominant theme for the Nasdaq over the coming sessions.
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
The Nasdaq 100 closed Thursday's session at 29,025.77 points, posting a decline of nearly 1.9% in a session dominated by profit-taking in the technology sector, particularly among semiconductor manufacturers. During the early hours of Friday's European session, the index is trading in the pre-market around 28,592 points, maintaining a bearish tone as investors continue to assess the ongoing earnings season.
The correction comes despite several leading companies linked to artificial intelligence reporting solid results. TSMC once again delivered strong growth driven by demand for AI chips, while Netflix exceeded earnings expectations, although its share price was pressured after issuing more conservative revenue guidance for the remainder of the fiscal year. The market is once again demonstrating that the technology sector's elevated valuations require not only strong earnings but also forward-looking guidance capable of justifying the substantial rally recorded over recent months.
From a technical perspective, the corrective move has pushed the index below its 50-session moving average, although it continues to find support at the 100- and 200-session moving averages, leaving the medium-term bullish structure intact for now. Nevertheless, the loss of the short-term moving average reflects a deterioration in buying momentum that should be closely monitored over the coming sessions.
Technical indicators also point to a cooling in momentum. The MACD has crossed below its signal line, while the histogram continues to develop in negative territory, confirming a slowdown in bullish momentum. Meanwhile, the RSI has declined to 41%, falling below the neutral 50 level without yet reaching oversold conditions, leaving room for a possible extension of the correction should market sentiment continue to weaken.
Volume analysis also provides relevant signals. The Volume Profile places the Point of Control (POC) within the range between 30,782.32 and 28,208 dollars, reflecting that this remains the area where the highest concentration of traded contracts is located. In addition, the profile shows a double volume concentration: a first area around 29,333 dollars, which could act as immediate resistance in the event of a rebound, and a second, much more pronounced node at 24,959.83 dollars, considered the market's main price acceptance level in a scenario of a deeper correction.
Investors' attention is now focused on the earnings reports that continue to be released throughout the day. Beyond headline profit figures, the market will closely analyse second-half guidance, margin trends and, above all, any comments related to artificial intelligence investment and demand growth. Following the market's reaction over recent sessions, it has become evident that merely beating estimates is no longer sufficient if companies are unable to raise future expectations.
Today's session will be crucial in determining whether Thursday's decline represents nothing more than profit-taking following the strong gains accumulated in recent months or, on the contrary, marks the beginning of a broader consolidation phase within the technology sector. With valuations still demanding and the earnings season entering its busiest stage, volatility is expected to remain the dominant theme for the Nasdaq over the coming sessions.
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance and forecasting are not a synonym of a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Political risk is unpredictable. Central bank actions can vary. Platform tools do not guarantee success.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.