Tech stocks came back in focus again today as early optimism dissipated. Nasdaq futures erased early gains to near flat levels, but have regained some ground again now. Tesla’s drag was a key talking point yesterday as tech stocks were hammered with Nasdaq falling near 4% at some point. The chart doesn’t paint a pretty picture with the index down by over 20% now since the beginning of the year.

Nasdaq Daily Chart – Down More Than 20% in 2022

MAs have turned into resistance for Nasdaq     

The support from the 38.2 retracement level @ 12,552 is the key one to watch this week with the March 2021 low at 12,397 adding to some additional downside buffer. But break that region and things could get even uglier and in such a scenario, I can’t see how that would not spillover and impact broader market sentiment. Needless to say markets are very volatile. There is a number of earnings to bereleased after the close including Meta, Ford, PayPal, Qualcomm, Pinterest, servicenow.

Twitter Daily Chart – The 200 SMA Acting As Resistance

The 200 SMA has turned into support at the bottom