The Nasdaq plunged on Friday for its biggest sell-off, relative to the Dow Jones Industrial Average, since 2008. All the big names like Apple, Alphabet Inc., Microsoft Corp., Amazon.com Inc. and Facebook saw billions of dollars shaved off their market-cap in the blink of an eye.
Overbought Oversold Indicator Explains Nasdaq Big Sell Off
The smoothed RSI indicator shows just how overbought the Nasdaq has been for months now.
Everybody is wondering if Friday marks the beginning of a turn down on the Nasdaq. Looking at the chart, it’s too early to tell but everybody is going to be watching the Nasdaq on Monday.
The key level to watch is Friday’s low and bounce off the uptrend line at around 5657.
I’m seeing a pattern of algos selling after a breakout which creates a headfake.