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The tech sector has stumbled in recent weeks as Nasdaq-100 futures have fallen about 7% from their yearly highs of 16,062.75 on July 19 to yesterday’s close. The weakness continued yesterday with a -1.14% drop that brought several notable developments from a technical perspective.

Second, the /NQ also closed below trendline starting with the January lows and travelling up through the lows from March, April, and May. This trendline roughly lines up with the 63-EMA, and also happens to coincide with the yearly Linear Regression Line (a line of best fit based on closing prices and typically used as a measure of fair value for a financial product).

This support confluence between the 63-EMA, the trendline, and the Linear Regression Line could be a key price point to watch, so be aware of any close below roughly 14,950. Beyond that, look to the previous highs near 14,600 for potential support. For resistance, the 21-day Exponential Moving Average will be a potential ceiling for the time being and comes in near 15,314.

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