Nasdaq Stabilizes After Historic Sell-Off; Bearish Bias Persists Below 200-Day Average

The Nasdaq edged higher on Friday morning, consolidating after Thursday’s historic collapse that erased over 7% of the index’s value in a single session.

The tech-heavy benchmark came under intense pressure after U.S. Democrats secured full control of Congress, a development that amplified existing concerns over increased regulatory scrutiny of rapid AI infrastructure expansion—particularly data center construction—triggering a sharp, broad-based sell-off.

The index is on track for its fourth consecutive weekly decline. The reversal from the October 6 record high has now yielded a loss of approximately 14%, comfortably exceeding the 10% threshold that typically defines a market correction.

Thursday’s accelerated decline pierced the 200-day moving average (28,064) and key Fibonacci retracement levels at 28,110 and 27,094 (representing the 38.2% and 50% retracements of the 22,791–31,397 rally, respectively). The session produced a massive bearish daily candle, generating strong technical signals that weigh heavily on near-term price action.

While oversold conditions on daily charts have prompted some partial profit-taking, downside risks remain elevated as long as price action holds below the broken 200-day moving average and fundamentals continue to favor the bears.

A weekly close below 27,080 (the July 27 low and near the 50% retracement) would reinforce the negative technical structure, keeping the path open for an extension toward targets at 26,230/26,080 (the January 29 high and the 61.8% Fibonacci level) and 24,822 (the 76.4% Fibonacci retracement).

Resistance: 27,515; 28,064; 28,467; 28,863
Support: 26,273; 26,230; 26,080; 25,450

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