Nasdaq Plunges on Chip Sell-Off; Dow and S&P 500 Slide After Netflix Earnings

Netflix shares fell 8.65% in the last 24 hours to $67.66, aligning with a sharp decline in the Nasdaq driven by chip sales. Despite the RSI 14 at 23.82 indicating oversold conditions, the MACD line remains below the signal line and in negative territory, suggesting weak short-term momentum. The price is trading well below the 20-day and 50-day moving averages ($73.58 and $74.13, respectively), indicating a continued downtrend. The broader market decline and Netflix's weak performance suggest the stock could fall further in the next 1-3 days. However, the oversold RSI raises the possibility of a short-term bounce, so the bearish outlook is strong but not certain.

The headline indicates that selling pressure in technology and chip stocks has also pulled the S&P 500 lower. Technical indicators confirm this weakness: the RSI is near oversold territory at 37, and the MACD is trending negatively below its signal line. With the price closing below both the 20-day and 50-day moving averages, the short-term outlook is negative. However, the limited decline over the past 24 hours and the RSI approaching oversold levels suggest that selling pressure may slow somewhat. Therefore, while the downtrend is expected to continue, some corrective buying may emerge due to oversold conditions.

The headline indicates that selling pressure in technology stocks is also affecting the Dow. Technically, the RSI is in neutral territory at 49, but the MACD remains below the signal line, pointing to weakness. The price is trading below the 20-day moving average, confirming negative short-term momentum. Although it remains above the 50-day average, there is a risk of testing this level if selling pressure persists. The downtrend is expected to continue in the near term.

The news headline indicates that Nasdaq experienced a sharp decline due to chip sales, which could put pressure on semiconductor stocks such as NVDA. Technical indicators also point to weakness: the RSI is at 41.67, below the neutral zone; the MACD is below the signal line; and the price is below both the 20-day and 50-day moving averages. In the short term, selling pressure is likely to persist, but since the market has not entered oversold territory, the pace of the decline may remain limited.