The U.S. stock market endured another challenging week, marking its third consecutive period of decline, with all major indices grappling with significant losses. The Russell 2000 led the retreat, falling over 16% from its December 2024 high, while the Nasdaq 100, S&P 500, and Dow Jones all breached crucial technical support zones. A surge in market volatility during the latter part of the week has raised further uncertainty about the market’s outlook.
As traders navigate these turbulent waters, they are left wondering whether the worst of the sell-off has passed or if further declines loom on the horizon. Looking ahead, key support and resistance levels will play a pivotal role in determining the market’s direction in the coming days.
Nasdaq 100: Testing Key Support Levels Amid Volatility
The Nasdaq 100 futures (ENQH25) have been under heavy pressure after falling below the critical 20,600 support level. The index found temporary support at 19,850 before experiencing a modest rebound. By the close of March 7, the Nasdaq was eyeing the 20,228 resistance level, a level that aligns with support seen in September 2024.
However, market sentiment remains fragile. A sustained rally above 20,228 and 20,357 could lead to a recovery toward 20,600 and beyond, but if the index fails to maintain support at 19,850, further losses are possible, with downside targets at 18,974 and 18,232.
Tesla, NVIDIA, and Apple: Stocks Facing Intense Pressure
- Tesla (TSLA): Tesla’s stock has plummeted by more than 46% since December 2024, breaking through the 481 resistance level and testing long-term support zones at 263 and 244. If this support holds, short-term recovery targets could be set at 275.70, 294.90, and 306.74. However, a fall below 244 may open the door for further declines, targeting levels at 232, 220, and 213.
- NVIDIA (NVDA): Despite strong earnings reports, NVIDIA has faced a sharp 21% decline over the past three weeks, dropping 26% from its January 2025 high of 153. The stock recently broke through the critical support of 139.28, accelerating its losses and trading at 112.70. Next week, the company’s stock faces critical support levels at 107.34, 102.40, and the significant 100.00 mark. A fall below 100 could shift the long-term bearish trend, with potential targets at 94.00, 91.00, 86.00, and 83.00.
- Apple (AAPL): Apple’s stock has fared somewhat better amid the broader market sell-off, down just 4% from its December peak of 260.00. The 237.32 support level remains intact but is under pressure, with Apple closing at 238.70 on March 7. If this support holds, a potential recovery toward 238.80, 241.30, and 242.82 could unfold.
S&P 500: Key Support Levels in Focus
S&P 500 Futures (EPH25) experienced a setback after failing to break through the 5,960 resistance level earlier in the week. The index is now down over 6% from its high of 6,171 and posted a 3% loss this week alone. The breach of key support levels, including 5,960 and 5,848, has now shifted focus to 5,682. If this level holds, the index may rally toward 5,733 and 5,765. However, a failure to maintain support could lead to further downside, targeting 5,627, 5,600, and 5,545.
Dow Jones: Navigating Persistent Downward Pressure
The Dow Jones Futures (YMH25) followed the broader market downtrend, suffering a loss of over 4% for the week and more than 6% from its December highs. After being rejected at the 43,910 resistance zone, the index dropped below 43,221 and ended Friday’s session at 42,809. Key support lies at 42,254, a level that aligns with historical support from September and November 2024. A break below 42,532 could lead to further losses, targeting 42,354. Conversely, a rally above 42,958 could pave the way for a retest of 43,221 and 43,647.
Russell 2000: Leading the Decline Among Major Indices
The Russell 2000 Futures (RTYH25) have borne the brunt of the market’s downturn, falling more than 16% from their December 2024 high of 2,502 and over 10% after breaking below 2,331. A head-and-shoulders reversal pattern has played out, with the index testing critical support at 2,034. The Relative Strength Index (RSI) has reached oversold territory, signaling the possibility of a rebound if buyers step in to defend 2,080. If this support holds, the Russell could target levels at 2,107 and 2,176. However, if the support fails, the index could face a deeper decline toward 1,965, potentially triggering a technical bear market.
Conclusion: A Critical Week Ahead for the Market
The ongoing sell-off continues to put pressure on major indices, with the Russell 2000 leading the losses. As we move into the second week of March, the market’s future direction hinges on whether key support levels can hold.
- Nasdaq 100: Support at 19,850 is crucial for a potential recovery to 20,600. A break below may lead to further declines to 19,487 and 18,974.
- S&P 500: The 5,682 support level is critical; failure to hold could lead to a drop to 5,600 and 5,545.
- Dow Jones: Watch the 42,532 support zone to avoid further declines toward 42,354 and 41,843.
- Russell 2000: The 2,034 support level is key to avoiding a bear market, with further downside risks below 1,965.
Next week will be decisive in determining whether a relief rally is on the horizon or if the downtrend will continue. Investors and traders alike should keep a close eye on these technical levels for potential breakouts or breakdowns.
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