What triggered Nasdaq 100 index's latest price pullback

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Nasdaq 100 slides 1.73% today

Highlights

Nasdaq introduced the Nasdaq-100 8% Income Target Total Return Index, offering a covered call strategy targeting 8% annual income for U.S. investors.
The new index employs at-the-money covered calls, reinvesting premiums and dividends to provide income in volatile markets.
Technical signals remain broadly bearish for the Nasdaq 100, with negative momentum and a trading range projected at 22,904 to 23,593 over the next five days.

New covered call index launched as sentiment turns defensive

Nasdaq launched the Nasdaq-100 8% Income Target Total Return Index, effective March 27, 2026, to provide U.S. investors with a new covered call strategy on the Nasdaq 100 aimed at delivering an 8% annual income target. The approach uses at-the-money covered calls, reinvesting dividends and option premiums, offering an alternative for income generation in volatile markets. This development occurred as price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, notes the Nasdaq 100 is entrenched below its main moving averages, which indicates dominant and persistent selling. He observes that momentum remains sharply negative, with no immediate technical support and indicators confirming a strongly bearish sentiment. Kharitonov stresses that volatility is high and downside gaps at the open underscore a lack of buyer interest. He points out that even with new product offerings, such as the 8% Income Target strategy, fundamental news is overwhelmed by current technical weakness. "Until the index regains ground above its resistance levels, I consider the risks of further declines to be significant," he concludes.

Viktoras Karapetjanc, expert at Traders Union, highlights that despite current pressure on the Nasdaq 100, strategic innovation persists. He emphasizes that Nasdaq’s launch of the 8% Income Target Total Return Index underlines continuing institutional interest in income solutions within volatile conditions. Karapetjanc is confident that such initiatives attract diverse investor flows and support the long-term outlook. "With new covered call strategies in play, the market structure offers multiple setups for future growth and resilience," he states.

Bearish momentum and lack of technical support deepen downside risk

Nasdaq 100 is trading distinctly below its 20-day, 50-day, and 200-day simple moving averages (24,564.41; 24,969.02; 24,404.72, respectively), indicating sustained selling pressure across short, medium, and long-term horizons. The closest dynamic resistance is the Ichimoku Kijun level at 24,462.28, with no major support showing near current prices.

Momentum remains negative, with MACD and Average Directional Index (ADX) both signaling further downside. The Relative Strength Index (RSI) also points to selling, and both the Stochastic RSI and Commodity Channel Index (CCI) highlight deep oversold readings. Bull/Bear Power (BBP) confirms that sellers are firmly in control intraday and continues to indicate an oversold environment. Awesome Oscillator (AO) lends additional support to the bearish tone. The index has declined 407.23 points or 1.73% today, opening with a downside gap of roughly 115 points, and is currently trading near the session's low. Intraday volatility stands at 1.19%. Downward momentum has intensified following the open, with no signs yet of reversal or stabilization.

Earlier, analysts noted that the Nasdaq 100 was experiencing persistent bearish momentum amid strong, broad-based selling pressure. The current article strengthens this negative outlook with fresh data confirming intensified downside momentum, leaving traders focused on $22,904 as a pivotal support level that could signal further selling if breached.

Source of Data: NDX Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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