The broader U.S. stock market is moving lower, with the NASDAQ leading the downside as selling pressure builds across growth and technology shares. The recent pullback follows failed attempts to sustain record highs and reflects a market that is becoming more technically vulnerable in the short term.
NASDAQ technical outlook: sellers regain control
The NASDAQ index has fallen below both its 100-hour and 200-hour moving averages, located at 23,312 and 23,176, respectively. Staying below these key moving averages keeps sellers firmly in control and shifts the near-term bias to the downside. The next important technical target comes at the 38.2% retracement of the rally from the August low, near 22,698.34. A move toward that level would confirm a deeper corrective phase is developing.
S&P 500 outlook: support levels now under pressure
The S&P 500 has fared better than the NASDAQ, but its technical picture has also weakened. The index has broken below its rising 100-hour moving average at 6,821.02, a level that previously helped keep buyers engaged. With that support now giving way, attention turns to the 200-hour moving average at 6,780.14. A break below that level would increase the bearish bias and expose the 38.2% retracement of the rally from the August low at 6,650.01.
That retracement level is notable. In November, the S&P broke below the same level on its way to a low near 6,522, before staging a strong recovery. More recently, the index closed at a record high of 6,901 last Thursday, but failed to extend toward the October intraday high at 6,920.04. The reversal lower on Friday and continued weakness today reinforce near-term caution.
Broadcom in focus as NASDAQ weakness accelerates
In the video above, I also examine Broadcom, which has become a poster child for the recent NASDAQ-led decline. Despite reporting better-than-expected earnings — EPS of $1.95 versus $1.86 expected, revenue of $18.02 billion versus $17.47 billion expected, and stronger-than-expected Q4 guidance — the stock failed to hold its gains. The reaction highlights that Broadcom was priced for perfection, with traders instead focusing on a modest decline in margins.
Since peaking, Broadcom shares have fallen roughly 17% from the highs and are now testing a key trendline near $344. A sustained break below that level would have traders targeting the $330 area, which corresponds to the November 14 low.
Bottom line
Across both indices and individual stocks, the technical message is becoming clearer. Failed breakouts, broken moving averages, and fading momentum are shifting control back toward sellers. Until key resistance levels are reclaimed, rallies are likely to be met with caution, with downside retracement levels remaining firmly in focus.
Watch the Video Analysis: In the video above, I (Greg Michalowski, author of Attacking Currency Trends) break down the technical factors driving the move, outline where the risk is, and map out the next targets that matter most for Nasdaq, S&P and Broadcom
Be aware. Be prepared.
