An early rebound lacked follow-through, with price stalling in Asia and London before U.S. sellers took control. Breaking key support, momentum stayed firmly bearish into the close, reinforcing downside risks.
Nasdaq’s Early Rebound Falters, Sellers Regain Control
After Friday’s sharp sell-off, the Asian session attempted to claw back some ground with a 100-point rally, pushing up to 21,790. But the move lacked conviction, with buying pressure fading fast and price drifting into a narrow consolidation range. As Europe came online, market participants remained cautious, with little immediate direction beyond short-term positioning.
London opened with a brief surge, taking out the Asian session high before stalling at 21,813. The failure to sustain momentum was telling. Buyers lacked follow-through, and the move quickly unwound into yet another session of indecisive range-bound trading. With neither side willing to take control, price action flattened and left New York to set the tone for the next major move.
U.S. Session: Nasdaq Breaks Down as Selling Accelerates
Wall Street opened on the back foot, with price slicing through Friday’s value area low and setting an initial floor at 21,463. Buyers made a weak attempt to reclaim that level, but the retest failed, flipping Friday’s value area into resistance and paving the way for another leg lower.
With momentum firmly in their hands, sellers kept the pressure on into the close, driving price lower and locking in a session low at 21,407. Any late-session dip-buying efforts were feeble at best. Bids dried up, and the bearish momentum remained intact, reinforcing broader downside risks heading into the next session.
Key Value Areas in Play: Why Sellers Keep the Upper Hand
Friday’s session was pivotal, with price breaking into January’s value area and closing beneath its upper boundary. This left Monday’s open at a critical juncture. Early buyers attempted to reclaim January’s value area high, but the challenge was always going to be steep. The level aligned with February’s developing point of control, creating a strong confluence zone that ultimately acted as a firm ceiling. The rejection was swift and decisive as sellers stepped back in with conviction.
The ensuing sell-off found initial support at February’s value area low, where buyers made a notable stand. However, the relief was short-lived. As price retraced toward Friday’s value area low, selling pressure returned in force, cutting the bounce short and reinforcing the broader bearish structure.
For now, the market remains under pressure, with price respecting key value areas and sellers dictating momentum. Unless buyers can reclaim lost ground with sustained demand, downside risks remain the dominant theme.
