TRADE SETUP NASDAQ (US100 CFD)

Where do we stand fundamentally?

The NASDAQ experienced a sharp decline on Monday, March 10, 2025, with the NASDAQ Composite dropping 4%, marking its worst day since 2022. This sell-off was mirrored by the NASDAQ 100, which fell 3.8%, pushing it deeper into correction territory—defined as a drop of more than 10% from recent highs. The downturn erased all post-election gains from late 2024, with major tech stocks like Tesla (down 15%) and Nvidia leading the decline. This followed a turbulent few weeks, with the NASDAQ Composite losing 3.5% for the week ending March 7, its third consecutive weekly drop.

The primary driver of this volatility appears to be growing economic uncertainty, fueled by concerns over President Donald Trump's trade policies, particularly his tariff proposals. Trump’s comments on Fox News’ Sunday Morning Futures, where he described the economy as in a “period of transition” and did not rule out a recession, heightened investor fears. Speculation is mounting that his administration might tolerate short-term economic disruption to pursue long-term goals like tariffs and reduced government spending. Posts on X also noted recession fears jumping to 39% on Polymarket, reflecting public sentiment.

NASDAQ is bouncing from the strong medium-term support of 19000 after the strong one-day decline of 4%. This bounce should lead to one more test of 22000 before anything else. It would be the end of the short-term fourth wave correction and the beginning of the fifth final wave.

The indicated scenario above would be invalidated only in the case of a break below 19000. Acceleration higher will happen in the case of a break above 20300.

_{I am taking a near-term long-trade entry with an SL below 19000 to target 20700 and possibly higher. You can trade it with options as well by buying call options.}