The broader U.S. stock indices are under heavy selling pressure, with the Nasdaq leading the decline as investors reduce exposure to technology shares.
The Nasdaq is down 2.65% to 25,012, while the S&P 500 has fallen 1.5% to 7,388
From a technical perspective, the S&P 500 is testing a key trendline support on the hourly chart that connects the June 9 and June 26 lows. That support comes in near 7,380. The index briefly traded below it, reaching a session low of 7,376, before rebounding modestly to around 7,392.
If sellers can push and hold the price below the trendline, the next downside target comes in a swing area between 7,321 and 7,341. The Nasdaq has already fallen into an important support zone between 24,913 and 25,109, with today’s low reaching 24,954.77. A sustained move below that floor would increase the bearish bias and shift the focus toward the 38.2% retracement of the rally from the late-March low at 24,707.