NASDAQ closed down -2.7% or -361 pts to 12997.75 overnight, losing 13k handle. More importantly, it’s now pressing 12985.05 support. Decisive break there will confirm a head and shoulder top formation (ls: 13728.98, h: 14175.11, rs: 13601.33). That would confirm near term reversal and target 100% projection of 14175.11 to 13003.98 from 13601.33 at 12430.20 and below.
Nevertheless, the medium term up trend is not too under threat yet. We’re looking at cluster support at 12074.06 (61.8% retracement of 10822.57 to 14175.11 at 12103.24) to contain downside and bring rebound. That would set the base for another up leg in the current up trend from 6631.42. However, firm break of 12074/12103 will open up the case of deeper medium term correction.
