📉 Nasdaq Drops 800 Points - What's Next?

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🌟 Market Wrap-Up! 🌟

Welcome to today’s edition of The Daily Trader! In this post, we’ll break down the Nasdaq’s dramatic 800-point plunge and what it means for the markets moving forward. Along with this analysis, we’ll highlight key levels to watch and insights to help you plan for tomorrow’s session. Whether you’re a seasoned trader or just starting out, our post-market recap is here to keep you informed and prepared for what’s next. Let’s dive in!

Nasdaq Analysis

Today’s FOMC meeting brought big moves to the market. The Fed lowered the federal funds rate by 25 basis points but signaled a more cautious outlook for 2025. Projections now show fewer rate cuts ahead, meaning borrowing costs could stay higher for longer. Inflation expectations were also raised to 2.5% for 2025, adding to the pressure.

The Nasdaq is now sitting at a critical support level. It’s testing a major trendline that dates back to August, a key marker for the ongoing uptrend. Additionally, the index has hit a crucial Fibonacci golden pocket between $21,058 and $21,022. So far, this zone is showing some strength.

If the Nasdaq holds above these levels, it could pave the way for a year-end rally. However, if we lose both the trendline and Fibonacci support, the index could see a much deeper drop.

Keep an eye on these levels as the market reacts to the Fed’s decision and its updated outlook.

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The Nasdaq's reaction to today’s FOMC decision highlights the delicate balance between inflation concerns and market growth. With key support levels at risk, the next few sessions will be crucial in determining whether the uptrend can continue or if we’re heading for a deeper correction.

Traders should stay vigilant, watching the $21,058 to $21,022 Fibonacci support zone closely. A strong bounce here could signal a continuation of the rally, but a break below could open the door to lower levels.

As always, keep your risk management strategies in place and stay flexible as the market adjusts to the Fed’s latest moves.

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We hope you enjoyed today’s analysis, packed with all the juicy insights you need to conquer the trading world! Stay tuned for more updates, analysis, and watchlists from The Daily Trader. Remember, the secret sauce to trading success is staying in the loop and making those savvy decisions. Thank you for being an awesome part of our community, and get ready for even more epic content coming your way soon. Until next time, trade on and stay awesome! 🐂