Nasdaq Composite finds support near correction territory

At the worst of Tuesday’s selloff, the Nasdaq Composite .IXIC fell to 24,581.01, its lowest level since April 30 and uncomfortably close to correction territory. At the low, the index was down 9.3% from its June 2 record close of 27,093.90 and 9.6% below its June 1 record intraday peak of 27,190.21.

But that weakness also brought the index into an area packed with technical support — and, for now at least, buyers showed up.

The Composite’s 100-day moving average was near 24,750 at Monday’s close, while the 38.2% Fibonacci retracement of the March-to-June rally stood at 24,707. The Composite bounced from those levels and closed Tuesday at 24,876.91, ending back above both markers and trimming its decline from the record close to 8.2%.

Attention now shifts to Wednesday’s key catalysts: the latest Federal Reserve policy decision and quarterly results from Microsoft MSFT.O and Meta META.O. Ahead of those events, E-mini Nasdaq 100 futures NQc1 are roughly flat, pointing to a subdued open.

If the IXIC’s rally gains traction, the first hurdles sit at the June 26 and July 17 lows of 25,015 and 25,251. Beyond that, the 23.6% Fibonacci retracement at 25,656 and the July 23 gap at 25,681 could pose tougher tests. The index would also need to reclaim its falling 50-day moving average, which is likely just shy of 26,000 on Wednesday, to suggest a more meaningful shift back toward the highs.

On the downside, a break below Tuesday’s low could draw attention to the 24,019-23,940 area. That zone includes the October 2025 high, the January 2026 high, the rising 200-day moving average and the 50% retracement of the March-June advance. A move there would leave the Nasdaq down more than 11% from its record close.

One encouraging sign beneath the surface: despite Tuesday marking the Composite’s fifth straight daily decline, the Nasdaq New High/New Low Index rose for a second consecutive session, ending at 35%. The measure remains below its falling 10-day average, but the recent uptick hints that market internals may be starting to stabilize.