Tech earnings disappoint Nasdaq 100 index as seller pressure dominates

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Nasdaq 100 falls 2.74% to 28,602

Highlights

Large-cap technology stocks in the Nasdaq 100 fell after major earnings reports, causing a broad index decline.
Nasdaq 100 futures dropped pre-market as caution persisted in the technology sector, deepening negative sentiment across the index.
Nasdaq 100 trades below key short- and medium-term moving averages with technical indicators showing bearish control and a high probability of continued downside toward 28,417 to 28,786 over the next two to three days.

Broader tech selloff intensifies as earnings and sentiment drive declines

Large-cap technology stocks within the Nasdaq 100 declined following major earnings reports, prompting a broad drop across the index, according to Lovinglifeofpeter Substack. This direct reaction to earnings season resulted in reduced index value, as heavyweight tech constituents faced post-earnings selling. Additionally, pre-market futures for the Nasdaq 100 also registered declines amid wider caution in the technology sector, amplifying negative sentiment, as noted by TradingKey. These developments together reinforced a negative tone for the index.

Intraday weakness confirmed as bearish oscillators meet technical resistance

Technically, NDX/USD has moved below the MA-20 at 29,575 and MA-50 at 29,365 on the hourly timeframe, while remaining above the MA-200 at 27,912 on the daily chart. Immediate resistance appears at the Ichimoku Kijun level of 29,552. Oscillator readings show MACD at Neutral, ADX signaling weakness, RSI at 44.74 biasing Sell, and CCI also on Sell, while Stoch RSI is oversold. Both Bull/Bear Power and the Awesome Oscillator are negative and oversold, confirming sellers retain intraday control.

Downside risks dominate as volatility confines index within narrow range

Over the next two to three trading days, NDX/USD is expected to consolidate within a range of 28,417 to 28,786 as typical volatility shapes price action. The probability of an upward move is very low, while downside risk remains elevated. A break above immediate resistance could open a bullish scenario, whereas sustained trading below support would reinforce further downside pressure.

Anton Kharitonov, expert at Traders Union, sees persistent weakness in the Nasdaq 100 as major tech earnings and negative sector sentiment drive prices lower. He notes that technical indicators remain bearish, with sellers firmly in control and key moving averages breached. Downside risk dominates as the index consolidates near support levels and buying interest remains muted. "Until the index regains key resistance, I expect further selling pressure and would remain defensive on any rebounds."

Earlier, analysts noted that the Nasdaq 100 was under persistent technical pressure, with downside risks prevailing despite structural developments. The current decline in heavyweight technology stocks post-earnings confirms the ongoing weakness, with the immediate focus on potential further downside should the index fail to reclaim the 29,552 resistance level.

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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