Nasdaq 100 to plunge towards 14050/13990 on a break below 14380 – SocGen

The rotation out of US assets showed no sign of lessening. In the tech-heavy Nasdaq, the correction snowballed to 9.1%. Failure to defend the trough of last October at 14380pts would open up projections of 14050/13990pts, economists at Société Générale report.

Near-term resistance is at daily Ichimoku cloud near 15600pts

“A revisit of the trough of last October at 14380pts is not ruled out. Failure to defend this support can result in persistence of the correction towards projections of 14050/13990pts; this is likely to be a crucial support.” 

“Near-term resistance is located at daily Ichimoku cloud near 15600pts.”

See – EUR/SEK: Significant recovery in US tech stocks needed to return to 10.20/40 – ING