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The Nasdaq stock index just dropped to new 2022 lows!

Is it time to start bargain hunting?

I’m checking out NAS100’s weekly chart for clues:

Nasdaq 100 (NAS100): Weekly

Nasdaq 100 (NAS100) Weekly Chart

Nasdaq 100 (NAS100) Weekly Chart

In case you missed it, the Nasdaq U.S. stock index just made new 2022 lows.

You don’t have to look far for the cause.

See, the White House just announced a new set of restrictions that would further limit U.S. companies from exporting advanced computing chips and chip-making equipment to China.

Buyers of U.S. tech stocks, who were already pricing in further rate hikes from the Fed, did NOT like the news.

NAS100 extended its stay below the weekly chart’s 200 SMA and is now trading below the 11,000 mark.

In fact, it dropped to lows not seen since September 2020!

Did the selloff provide a good entry point for the bulls? Or are the bears just getting started?

Traders are closely watching the U.S. inflation-related reports scheduled this week.

Core PPI and headline and core CPI are expected to show slower growth, which could encourage some bulls to scale in.

Stochastic turning higher from its oversold levels may also attract some bulls.

Look out for buying near the 10,500 zone that lines up with June 2020’s resistance and the 61.8% Fibonacci retracement of the last major upswing.

If this week’s market themes drag NAS100 lower, however, of if the PPI and CPI reports still point to more aggressive rate hikes from the Fed, then you might want to wait for lower support levels.

The 9,800 zone could be the next support depending on the longer-term selling pressure.

What do you think? Will NAS100 trade higher in the next couple of weeks?

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.