The Nasdaq experienced a selloff this week, driven by President Trump’s threats of 10% tariffs on China and weak economic indicators. Last Friday’s poor US Flash Services PMI and a rise in long-term inflation expectations contributed to market pressures.
The downturn is partly due to concerns that the Federal Reserve may not sufficiently reduce rates amid persistent inflation. March is anticipated to be pivotal for traders, with key Non-Farm Payrolls and Consumer Price Index reports being released before the Federal Open Market Committee meeting.
On the daily chart, the Nasdaq fell below December’s lowest price, indicating potential further selloff. Chart analysis suggests bearish momentum may continue unless the price recovers above the 20705 level, which could trigger bullish activity.
In the four-hour timeframe, a downward trendline signals ongoing bearish sentiment. Conversely, a breakthrough could lead to bullish positions aimed at reaching new highs.
The one-hour chart indicates sellers may dominate unless the price rises significantly. The market will be observing the US Personal Consumption Expenditures data to conclude the week.
The pressure on markets has been unmistakable. With last Friday’s weak Flash Services PMI casting doubt on economic resilience, investors have been left weighing the potential ripple effects. Inflation expectations creeping upward only added to unease. Now, with March looming and decisive data on the horizon, those navigating these moves must consider the balance of expectations versus reality. The Federal Reserve’s approach remains a sticking point—many had hoped for more aggressive rate cuts, yet inflation’s persistence is complicating that outlook.
From a technical standpoint, sellers have held firm. Falling beneath December’s lowest levels speaks volumes. This isn’t just about a temporary dip; it’s a reflection of prevailing market scepticism. Without a rebound above 20705, bearish momentum could remain dominant. We’ve seen sharp climbs from sudden reversals before, but right now, that threshold carries weight.
Looking closer at the four-hour view, the descending trendline has so far acted as a ceiling for price movements. A clear break beyond could change the narrative, potentially shifting sentiment towards the upside. Until then, downward pressure remains intact.
On the one-hour perspective, sellers appear to be steering the direction. Buyers have had little room to reverse course as long as downward pressure persists. The next key event on the radar is the US Personal Consumption Expenditures report—one that has historically influenced market confidence. With that release closing out the week, reactions could shape the short-term path ahead.
