Still, shortly after the US opening bell, the index was down 2% and was seen trading slightly above the 11,000 USD threshold.
As you can see from the chart, the Nasdaq index dropped to previous lows near 11,000 USD, which is the crucial support. As long as the index trades above this level, the medium-term outlook still seems bullish.
The first target for a possible bounce is near 11,200 USD, and bulls need to regain this level to become more confident.
Alternatively, if the price drops below 11,000 USD, larger stop-losses and margin calls could happen, most likely pushing the index further lower.
Bears will be targeting 10,850 USD as the next support, but the index might drop toward 10,500 USD as it had been heavily overbought.
