Nasdaq 100: Correction lower to find important support at 9182/53 – Credit Suisse

Nasdaq 100 has opened lower, trading down -1.17% at 9477, and analysts at Credit Suisse look for a consolidation/corrective phase to emerge with support seen at 9357, then more importantly at 9182/53.

Key quotes

“We remain of the view a peak is in place for now and what may be a protracted consolidation/corrective phase is underway following its rally to what we have viewed as its ‘typical’ upside extreme (15% above the 200-day average) and long-term trend resistance from February 2011 at 10135/55.The bearish MACD cross and potential top is seen adding a further negative tone.”

“After breaking initial support at 9499, we see the next level to watch at the 23.6% retracement of the March/June rally at 9357, then what we look to be better support, starting at 9240 and stretching down to price and gap support at 9182/53. Only beneath this latter area would see a price top established, with support then seen next at 8863/61 – the 38.2% retracement of the entire rally from March and mid-May low.” 

“Resistance is seen at 9736 initially, with the immediate risk seen staying lower whilst below 9849. Above can see a recovery back to the beginning of the price gap from last week at 9978.”