The removal of midterm uncertainty initially provided a broad-based boost to risk appetite. But investors may be increasingly pricing in the prospect of tighter regulatory scrutiny of Big Tech, particularly around AI, observes Fawad Razaqzada, technical analyst at TradingCandles.
This creates a potential headwind for technology valuations, even if the immediate earnings impact remains unclear. Indeed, Nasdaq 100 futures were off by 0.8% early Thursday – and fell much more later.
From a technical analysis perspective, the Nasdaq 100 remains one of the weaker-looking charts among the major global equity indices.
The recent price action has been bearish, with the index forming a succession of lower highs and lower lows since peaking in October. Until that pattern changes, the path of least resistance remains to the downside.
The next major area of potential support comes in around 26,350–26,400, which coincides with the previous all-time high. On the upside, immediate resistance is now concentrated in the 28,800–29,000 region. This area previously acted as support in late August and early-to-mid-September.
