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NDX has bounced off a support line, but needs to reclaim its 200-day moving average for a bullish scenario, according to Yuriy Matso. Matso also observes that the True Strength Index is oversold and that a bear trap has formed.
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Matso recently highlighted that QQQ dropped 6.6% from its record high over eight sessions, a precedent seen in years such as 2000 and 2020, in an earlier post at /news/market-voices/show/3854750-qqq-past-large-declines/. He also noted in November that QQQ closed at $647.05, down 14.8% from its October peak, with examples supporting both sides of the bear market debate at /news/market-voices/show/4151903-qqq-drops-fourteen-percent/. These observations frame the current focus on technical signals for the NDX.