Nasdaq to extend the correction towards 10275 – Credit Suisse

Nasdaq 100 has completed a near-term top to maintain the risk for further weakness to the 38.2% retracement of the 2020 rally at 10275, per Credit Suisse.

Key quotes

“The decline has extended further for the completion of a ‘head & shoulders’ as well as a break of the 63-day average and we maintain our view for a deeper corrective setback to the 38.2% retracement of the rally from March at 10275. Whilst we have been looking for an attempt to find a floor here, we note now the risk for an overshoot to the 50% retracement and 200-day average at 9605/9545, where we would then look for more concrete signs of a floor.”

“Back above 11495 is needed to suggest the corrective setback is over and core uptrend resumed.”