The Nasdaq fell -100 points or -0.55%. The price returned to the downside to test yesterday’s low of 17909.75. Earlier in the day, the price fell below this level on its way to closing the gap between Wednesday and Thursday (i.e. Wednesday’s high). Buyers came in near the level and pushed the price higher again.
If buyers show up here, it’s a call for bearish dogs again.
Conversely, if we move below the 17909 level, we may be able to take another look at the bottom of the gap near the 17832 level before the end of the week.
By the way today is Triple Witching Day.
The term “triple witching” refers to the simultaneous expiration of stock options, index options, and index futures contracts. This occurs four times a year—on the third Friday of March, June, September, and December—and is known to result in sharp price movements as traders close or roll over existing positions. So get ready.
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