Market bloodbath: Panic or opportunity? [Video]

Carol Harmer Charmer Trading

Friday's market bloodbath saw the Nasdaq fall almost 5%, sending shockwaves through global equity markets and leaving traders questioning whether this is the start of a much deeper correction.

From a technical perspective, the sell-off has so far respected the 23.6% Fibonacci retracement level, suggesting that the longer-term uptrend remains intact for now. However, the market is at a critical juncture.

The daily pivot point at 29,305 has currently capped any recovery attempts, making this a key level to watch as Wall Street returns.

The immediate question is whether buyers have the conviction to defend the current support zone or whether Friday's selling pressure triggers a deeper correction.

Should the Nasdaq continue lower, I will be watching the following key support levels:

27,732
27,672
27,347

These are areas where I would expect buyers to become increasingly active, looking to accumulate positions after Friday's sharp decline.

At this stage, I do not view the recent price action as a major trend reversal. Corrections are a normal part of any bull market. However, the next few trading sessions will be crucial in determining whether this was simply a bout of panic selling or the beginning of a broader risk-off move.

In this video I analyse the charts, key technical levels, market sentiment, and what traders should be watching as the week unfolds.

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

AUD/USD struggles to recover as hawkish Fed bets escalate

The Australian Dollar is under pressure against the US Dollar as traders have raised bets supporting interest rate hikes by the Federal Reserve this year, with the AUD/USD pair posting a fresh almost eight-week low at around 0.7025. Hawkish Fed bets have accelerated following the release of the surprisingly strong United States Nonfarm Payroll (NFP) data for May.

USD/JPY holds higher ground toward 160.50 despite 'Yentervention' fears

USD/JPY holds higher ground toward 160.50 in Monday's Asian trading, despite intervention fears. Japan’s revised GDP print, which confirmed that the economy lost momentum in the first quarter, weighs on the Japanese Yen. Meanwhile, Friday's upbeat US NFP report and fresh Israel-Iran attacks favor the US Dollar bulls, underpinning the currency pair.

Gold sticks to the positive bias, still below $4,350

Gold manages to reclaim the $4,300 mark per troy ounce and above on Monday. The yellow metal’s small uptick comes on the back of modest losses in the US Dollar, while traders continue to follow geopolitical events in the Middle East and the likelihood of a tighter-for-longer Fed.

Solana: ETF outflows and bearish sentiment reinforce downside risks

Solana (SOL) remains under pressure, trading below $66 on Monday after losing nearly 20% in the previous week. Institutional demand weakened with spot Exchange Traded Funds recording a net outflow of over $6.5 million last week, snapping a four-week streak of inflows.

$1.75 trillion: Is SpaceX the most popular IPO in history, or the most engineered?

On June 12, the largest initial public offering (IPO) in history is set to hit the tape, and almost nobody is asking whether the price is right, because almost everybody already wants in.

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.