Insights 
VT 
The NASDAQ index has declined by over 1.25%, driven by losses in high beta stocks, particularly chip stocks. Broadcom, Nvidia, and AMD have fallen by approximately 4%, 3.93%, and 4.45%, respectively.
Other notable drops include Meta at 2.56%, Tesla at 5.3%, amid tensions between Trump and Musk, and Palantir at 4.98%. Additionally, Crowd Strike has decreased by 4.4%, Super Micro Computer by 4.31%, and Palo Alto Network by 4.02%.
Technical Supports And Moving Averages
The NASDAQ remains above its 100-hour moving average, which is presently at 19789.56, while today’s lowest point was 20105.42. To foster a more bearish outlook, the index would need to drop below this moving average. The 200-hour moving average stands at 19503.56, a level near which the index found buyer support on June 23.
The paragraph outlines a pullback in the NASDAQ index, largely driven by weakness in companies that typically respond more sharply to market shifts — those with higher beta values. Particular attention is paid to semiconductor manufacturers and several major technology firms that have seen their shares tumble around 4% or more. Despite the pressure, the index remains technically above an intermediate-term trend level: the 100-hour moving average. It has not yet breached zones that would suggest a trend reversal into sustained negative territory, but it is edging nearer. Our focus ought to shift toward how the index behaves relative to this support. If that line gives way, prior buying interest observed near the longer-term 200-hour marker might come into play again.
This setup implies caution for those of us trading short-term derivatives. We are in a range that holds, for now, but weakens at the edges. The index’s bounce above 20100 suggests dip-buyers are present, though it’s not yet compelling given the volume of names trading lower — especially in a concerted fashion. That degree of uniformity across such different firms indicates that selling pressure is not isolated to one corner of the market.
Tech And Ai Firms Retreat
It’s important to take note of the clustering of losses among tech and AI-related firms — many of them with lofty forward valuations. Rosenblatt’s commentaries in recent sessions had already flagged some froth in these areas, and the pricing action now reflects more speculative capital stepping back. The trigger does not appear to be earnings-driven, but rather rooted in broader risk appetite. The tech-heavy losses — in the absence of notable news catalysts — point squarely at positioning pressure.
When strong names like those listed start coming under pressure together, particularly ahead of scheduled inflation prints or rate decisions, it tends to be driven less by fundamentals than by portfolio hedging or deleveraging. That’s where derivative activity intensifies. We have seen open interest clustering near daily at-the-money calls through last week’s peak — much of that positioning is likely underwater now.
In terms of short-term action, if levels near 19790 start showing signs of breaking intraday with stronger volume, that would typically lead us to adjust toward more defensive setups — possibly favouring delta-neutral spreads or downside skewed verticals. We’re not seeing those levels under strict threat yet, but repeated testing and heavy sell volume late in the U.S. sessions would turn that risk from background scatter to the main current. With implied volatility still relatively suppressed, some of the faster money may look to put on protection in cheaper form.
Likewise, any brief rallies now must contend with overhead pressure near 20450, stemming from unfilled downside gamma that market makers are actively hedging. That caps any upward move unless we see renewed volume on the buy side. Until that changes, bounce attempts might stall quickly, giving room to fade any weak rallies intraday — particularly in names still carrying high implieds.
In recent days we’ve also noticed unusually large lopsided put activity in select mega-cap names. That could either be institutional hedging or speculative short-side flow — either way, it increases the chances of wider price wings and jolts in implieds.
So from here, we are watching how option flows cluster around that 19790–19800 band. A breach opens up testing of areas where longer-dated moving averages lie and where we’ve seen more mechanical buying patterns resurface — as was the case back on the 23rd. If that support catches again and holds clean, we expect a short-term floor. But until then, the lean in the data and in the price suggests keeping reaction times short and watching for compression or reversal signals particularly near the open or close.
