The Nasdaq-100 Tech Index (#NDX) is trading around 11,389, bouncing back after reaching support at 2/8 Murray at 11,250 in the European session.
At the beginning of the week, the NDX left a bearish gap around 11,859. Since then, the Nasdaq has continued its downward trend that originated after the surprising US CPI report.
The US inflation data is putting markets at risk, falling rapidly. This week in the US, the interest rate will be increased by 0.50% or 0.75% and the FOMC minutes will take place.
Since the stock and the cryptocurrency markets are falling sharply, it is likely that traders will continue to take refuge in the dollar until the data from the United States is published on June 15.
The zone of 2/8 Murray has become a strong support for the Nasdaq-100. A technical bounce around this area could offer an opportunity to buy with targets at 3/8 Murray around 11,875. If the NDX rebounds, it could cover the gap it left on June 10 and could reach the 200 EMA at 12,575 only if it breaks and consolidate above 12,000 points.
The eagle indicator on June 13 reached the extreme oversold zone which is likely to have a technical bounce in the coming hours. This could be used as a buying opportunity only if the Nasdaq-100 consolidates above 11,250 (2/8 Murray).
The trend remains bearish according to the daily chart and the 4-hour chart. Therefore, a pullback to the 21 SMA around 11,899 (21 SMA – 3/8 Murray), if it fails to break it, will be a signal to sell with the targets at 11,500 and 11,250.
