The Wall Street decline continued yesterday as global concerns rise. What can traders expect next?
November 20, OctaFX – The biggest decline was in the technology sector, which dropped by 3.79% and was led by chip stocks like NVIDIA and AMD.
Other big losers were companies like Apple, which has been cutting orders for the latest iPhones. The only bright spots were in the utilities and real estate industries.
This decline will lead to contagion around the world today with the DAX and STOXX set to fall by 60 and 40 points respectively.
Nasdaq Index Continues to Decline
The Nasdaq index continued to decline led by Apple and chip stocks. In recent weeks, Apple’s market capitalization has dropped by more than $200 billion. The Nasdaq’s RSI is currently at 27 on the hourly chart below.
The current price is below the 200 and 50-day EMA. The momentum indicator has also fallen sharply as shown below. There is a likelihood that it will get worse for the index before it gets better. The index will likely test the previous low of $6575 before starting to move up.
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