What Happened
Global tech stocks came under sharp pressure on Tuesday after reports emerged that governments are moving to force tech giants to share more of their booming profits with citizens via new tax frameworks. The Nasdaq dropped approximately 1.5% to around 17,150, while the S&P 500 slipped 0.8% to near 5,460. On the ASX, technology-linked names dragged the ASX 200 lower by 0.6% to approximately 7,740, with the broader selloff hitting high-growth and momentum stocks hardest.
Key Levels
- ASX 200 โ Support: 7,700 (recent swing low) and 7,620 (50-day moving average zone). Resistance: 7,800 and 7,850 (prior high).
- Nasdaq โ Support: 17,000 (psychological level) and 16,750 (200-day moving average). Resistance: 17,400 and 17,700.
- S&P 500 โ Support: 5,400 and 5,330. Resistance: 5,500 and 5,550.
Technical Picture
The Nasdaq remains in an uptrend on the weekly chart but is now testing its 20-day moving average near 17,100. RSI has pulled back from overbought territory (was above 70) to around 55 โ still healthy but losing momentum. The S&P 500 is holding above its 50-day moving average at 5,350, which is a positive sign for bulls. On the ASX, the 200 index is trending sideways between 7,700 and 7,850.
What Traders Are Watching
US tech names are the key focus. Nvidia is hovering near $1,080 โ a break below $1,040 would signal further downside. Apple and Microsoft are both testing short-term support near $210 and $415 respectively. On the ASX, watch CSL near $295 support and MQG around $215. If Wall Street stabilises above Nasdaq 17,000, expect a quick bounce in ASX tech-adjacent names.
Bias โ Neutral to Bearish Short-Term
The tax headline introduces a new structural risk for tech valuations. Until clarity emerges, expect choppy trading and profit-taking on rallies. Retail traders should avoid chasing dips in high-PE tech names until support levels confirm.