The Nasdaq 100 fell to 29,146 on Monday, breaching a key technical level after failing to sustain gains above 30,326. The five-hour candle formed a hammer pattern at the 29,146 mark, but momentum indicators signaled deeper selling pressure. The index closed at 29,308.86 on Friday, up 0.33%, but Monday’s decline erased those gains as sellers pushed prices below both the 200-period simple moving average and the Ichimoku cloud.
Technical momentum deteriorated sharply, with the MACD widening to -158.34 from a signal of -135.12, while the ADX held at 32.10, confirming a strong downtrend. The Money Flow Index dropped to 20.04, entering oversold territory, and the RSI fell to 36.66, deep in bearish territory. Overhead supply near 29,800 and resistance between 29,412 and 29,700 capped any immediate rebound, leaving the path of least resistance pointed lower.
Support is clustered between 28,767 and 29,135, where the Fibonacci 50% and 38.2% retracement levels converge. A breakdown below this zone would expose downside targets at 28,400 and 27,208, the latter marking a prior swing low. Traders positioned for a breakdown are targeting these levels with risk/reward ratios ranging from 2.2 to 7.52, depending on entry points. A retest of resistance at 29,412 that fails to hold could also trigger fresh selling, with the same targets in play.
The index’s retreat follows a failed attempt to reclaim the double top at 30,326, reinforcing the shift in sentiment. With no immediate reversal signals evident, the focus remains on whether buyers can defend the 28,767–29,135 support band or if sellers will extend the decline toward the next major support cluster.
