Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View More
Nasdaq 100 Forecast: Eyeing Further Downside if a "Death Cross" Forms

Nasdaq 100 Forecast: Eyeing Further Downside if a "Death Cross" Forms

Margaret Yang, CFA, Former Strategist

Nasdaq 100 index Technical Forecast: Bearish

  • The Nasdaq 100 index hit an all-time high of 13,879 before entering into a technical correction
  • Prices broke the “Ascending Channel” and formed a lower high, suggesting that near-term downward pressure is prevailing
  • The 20-day SMA line crossed below the 50-day and 100-day SMA lines, potentially leading to the formation of a “Death Cross”

The Nasdaq 100 index reached its all-time high of 13,879 on February 16th before entering a consolidative period. Prices broke below the “Ascending Channel” and reversed sharply lower, pulling the 20-day SMA below the 50- and 100-day lines. This points to the potential formation of “Death Cross”, which usually signals a major trend reversal. The last time the 20-day crossed below the 100-day SMA line was back to March 2020, when the index tumbled more than 30% during the pandemic-induced selloff.

Last week, the Nasdaq 100 index failed to breach above the trend-defining 50-day SMA line and has reversed lower, suggesting that a deeper pullback is possible because it appears to be forming a “lower high” on the daily chart.

An immediate support level can be found at 12,600 – the 76.4% Fibonacci extension. Breaking below this level would likely intensify selling pressure and thus open the door for further losses with an eye on 12,390, the 61.8% Fibonacci extension level.

An attempt to stand above 12,950- where the 100% Fibonacci extension and the 100-day SMA line intercept – will likely encourage bulls to take over control and carve a path for price to challenge an immediate resistance level of 13,343 – the 127.2% Fibonacci extension.

Nasdaq 100 Index – Daily Chart

Nasdaq Chart

Chart by IG

On the weekly basis, the Nasdaq 100 index pocketed an astonishing gain of 107% from late March 2020 until early February 2021(chart below). The near-term trend has likely turned bearish as the 4-period SMA crossed below the 10- and 20-period SMA lines. Prices struggled to remain above the trend-defining 20-period line, breaking which signals the entering into the lower Bollinger Band. The MACD indicator formed a bearish crossover in later February and trended lower since, suggesting that upward momentum is fading.

Nasdaq 100 Index – Weekly Chart

Nasdaq Chart
Building Confidence in Trading
Building Confidence in Trading
Recommended by Margaret Yang, CFA
Don’t give into despair, make a game plan
Get My Guide

--- Written by Margaret Yang, Strategist for

To contact Margaret, use the Comments section below or @margaretyjy on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.