The Nasdaq index is chopping up and down during the Powell speech, reflecting indecision after last week’s sharp selloff. The low for the day reached 20891.96, briefly breaking below a key swing area between 20902.48 and 21033.05, but sellers could not generate follow-through momentum.
The price has since bounced and is now trading back within that swing area near 20948. This zone is the barometer for buyers and sellers today—and likely into the week ahead.
Move back above 21033.05, and you should see increased short covering after five consecutive weeks of declines. That would shift the near-term bias more to the upside.
On the downside, a break back below 20902.48 would re-empower sellers and likely lead to a resumption of the move lower, targeting the 38.2% retracement of the rally from the April 2024 low at 20491.86.
Bottom line: The market is at a key inflection point. The swing area defines the bias—above favors a corrective bounce, below opens the door for another leg lower. Pay attention.
