Nasdaq Plummets: Is This the End of the Bull Run for Tech Stocks?

Recent Nasdaq Volatility and Investor Concerns

The Nasdaq has recently exhibited significant volatility, raising investor concerns regarding the stability of technology stock prices.
This emerging anxiety is primarily fueled by the latest data from the Job Openings and Labor Turnover Survey (JOLTS), released today.

This information has reignited fears of a potential economic slowdown, even though the data still reflects a certain resilience within the broader market.
So, what can we realistically expect from the tech stock market moving forward?

The Importance of JOLTS for Investors

JOLTS serves as a vital indicator that measures job vacancies within the economy.
A decline in job openings can signal a waning demand for workers, implying that companies may be adopting a more cautious hiring approach due to fears of an economic downturn.
This situation has heightened concerns about the possibility of a severe economic contraction and a subsequent recession.

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Nasdaq’s Current Market Position

Despite these concerns, it would be inaccurate to characterize the Nasdaq as undergoing a full-blown collapse.
Even though the tech index experienced a contraction at the beginning of the trading session, the day was marked by alternating phases of declines and gains.

A key indicator of this uncertainty has been the VIX, often referred to as the “fear index,” which surged on August 3rd, signaling increased market volatility.
However, by August 4th, despite a notably negative start, the atmosphere seemed to stabilize, and the VIX returned to more moderate levels by the end of the day.

The CME’s Fear & Greed Index also lingered in “neutral” territory, indicating that the market is neither overly concerned nor excessively optimistic but exists in a sort of limbo, awaiting further economic data to clarify future prospects.
This index, which measures investors’ fear and greed, often serves as a useful signal for gauging prevailing market sentiment.

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Technical Overview of Nasdaq

From a technical perspective, the Nasdaq is traversing a period of high volatility that may provide opportunities for rebounds or further corrections, depending on how macroeconomic data unfolds in the coming weeks.
Analyzing the charts with a focus on a shorter timeframe reveals that a primary point of interest lies at 18,800 points, a technical threshold that separates the current price from the recent low of 18,000 points.

Many analysts anticipate a period of lateral movement within a broad range between 18,000 and 20,000 points.
Nevertheless, volatility is expected to remain high, given the extensive range that the index might experience.