Nasdaq Composite tests bulls' resolve after sharp tech-led selloff

From a technical perspective, bulls are eyeing an important support area around 24,700.

That zone combines the 38.2% Fibonacci retracement of the March-to-June rally at 24,707 and the rising 100-day moving average, which stood at 24,687 at Thursday's close. A pullback to that area would leave the Composite roughly 8.8% below its record closing high.

If buyers fail to defend that area, attention would shift to a more significant cushion between 24,019 and 23,940. That band includes the October 2025 and January 2026 highs, the 50% retracement of the March-to-June advance and the rising 200-day moving average. Reaching that zone would put the Composite about 11.4% below its all-time closing peak.

On the upside, the first hurdle is around 25,656, where the 23.6% Fibonacci retracement now sits. Thursday's opening gap also creates resistance, with the index needing to reclaim 25,681.33 to fully close that gap.

For a more convincing bullish turn, the Composite would need to clear a cluster of resistance levels, including the downtrend line off its record high, the falling 50-day moving average at 26,100 and the July 15 intraday peak at 26,316.81. Clearing those barriers would be an early sign that the recent selloff has run its course and could put the Composite back on a path toward new record highs.

Wall Street had a tough session on Thursday, with the Nasdaq Composite .IXIC taking the biggest hit as investors dumped tech stocks. The Magnificent Seven group was at the center of the selloff, with the Roundhill Magnificent Seven ETF MAGS.K tumbling 4.6% — its steepest one-day decline since April 2025.

The Nasdaq opened sharply lower and never really recovered. At its intraday low of 24,954.77, it touched its weakest level since early May, before finishing down 2.2% at 25,137.69. That left the index about 7.2% below its June 2 record close of 27,093.90 and roughly 7.6% below its record intraday high of 27,190.21 reached the previous day.