Nasdaq Composite tests Fibonacci 78.6% level amid valuation worries and Fed hawkish stance

Traders Union
All News
Financial News
Nasdaq Composite tests Fibonacci 78.6% support

All news

Top Stories

Editors' Picks

Crypto News

Financial News

Currencies

Market Voices

Companies

Regulators News

Sholanke Dele

18.11.2025

Nasdaq Composite tests Fibonacci 78.6% level amid valuation worries and Fed hawkish stance — Nasdaq slipped over 250 points on Tuesday

The Nasdaq Composite Index extended its recent losses on Tuesday, November 18, as persistent concerns over lofty equity valuations and fading hopes for a near-term rate cut continued to weigh on investor sentiment. Futures tied to the index fell over 1% in premarket trading, slipping more than 250 points from Monday’s close at 22,700. The weakness came as investors shifted focus toward upcoming economic data and corporate earnings, particularly Nvidia’s results later in the week, which could provide fresh insight into the health of the broader technology sector.

- Nasdaq slipped over 250 points on Tuesday as valuation concerns triggered renewed selling pressure.

- RSI at 43 and 50-day EMA resistance signal bearish short-term structure for Nasdaq.

- Nasdaq Composite remains 5.5% lower month-to-date, which marks the steepest decline in eight months.

Large-cap tech names led the declines in early trading. Amazon.com fell 1.2%, while semiconductor stocks such as Advanced Micro Devices and Broadcom also edged lower. The renewed selling pressure follows Monday’s 1.5% drop in the Nasdaq to a low of 22,560 before a late-session rebound helped the index close higher at 22,700. The rebound occurred near a rising trendline that has supported the index’s broader bullish trajectory since September, but the overall short-term bias remains tilted to the downside.

Nasdaq price dynamic (Oct - Nov 2025). Source: Tradingview

The Nasdaq’s recent weakness reflects a continuation of the correction from its late-October all-time high near 24,000. So far this month, the index has shed over 5.5% or roughly 1,300 points, marking its steepest monthly decline in eight months. This pullback highlights investor unease about overextended valuations in the technology sector and uncertainty about the Federal Reserve’s policy direction. Recent remarks from Fed officials have leaned hawkish, dampening expectations for a December rate cut and triggering renewed risk aversion across growth-heavy assets.

Nasdaq RSI at 43 confirms strengthening downside momentum

From a technical perspective, the index’s current decline is testing the key Fibonacci 78.6 retracement level near 22,560, which has acted as a crucial support zone for the past two weeks. The daily RSI has dropped further into bearish territory at 43, a level not seen since April, indicating that downside momentum is strengthening. The 50-day EMA now acts as near-term resistance, which might cap recovery attempts and confirm a tightening range between key technical levels.

For the broader outlook, the Nasdaq remains structurally bullish on the higher time frame, but the near-term setup suggests that bears are still in control until a decisive break above the 50-day EMA signals renewed buying momentum. If the index fails to hold the current Fibonacci support, it could open room for deeper retracement toward 22,200, the October swing low. Conversely, a rebound above 22,900 may help restore confidence and revive buying interest, especially if upcoming Fed commentary or corporate results tilt market expectations back toward easing conditions.

We discussed how the Nasdaq rebounded from the 22,440 low after Berkshire’s Alphabet stake renewed tech optimism. Fed officials’ comments could have confirmed the Nasdaq recovery above the 22,600 support.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.