US Midterm Elections Create Selling Pressure on Wall Street

QQQ has fallen 3.9% over the past 24 hours, dropping below its SMA20 and SMA50, and the short-term trend has weakened. Although the RSI at 35.9 is approaching oversold territory, there is no reversal signal yet; the MACD is in negative territory and above its signal line, meaning momentum remains to the downside. Midterm election uncertainty could weigh on risk appetite and increase volatility. However, since oversold conditions may trigger short-term bargain buying, one should not be overly bearish. For the next 1-3 days, a mild downward bias is expected, with choppy weak trading rather than heavy selling.

NDX fell 3.87% over the past 24 hours, sliding below both its SMA20 and SMA50; the short-term trend is weak. Although the RSI at 36 is approaching oversold territory, no reversal signal has yet emerged. MACD remains in negative territory but above its signal line, implying that downside momentum has slowed somewhat. Midterm election uncertainty could weigh on risk appetite; nevertheless, a sharp decline should not be expected given the possibility that the news is already priced in. A choppy, mildly downward-biased course is likely in the short term.

NVDA fell 2.9% over the past 24 hours to 206.57 and is attempting to hold just above its SMA20. With an RSI of 45, the stock sits in neutral-to-weak territory, while MACD remains in negative territory but above its signal line, indicating weakening short-term momentum. Uncertainty surrounding the US midterm elections could weigh on risk appetite and trigger selling in technology shares. Given resistance above the SMA50 (211.6) and election-driven volatility, downside pressure is coming to the fore. Nevertheless, as reaction buying may emerge once election results become clear, confidence should be kept at a moderate level.