A Dark Day on US Markets: Chip Companies Plunge on Heavy Selling

Sharp selling in US chip companies is disrupting global risk appetite; the XU100 carries a risk of negative divergence. The index has already declined 1.26% intraday, falling below its SMA20 (11410), and short-term momentum is weak. MACD is below its signal line (79.7 vs 107.1), while RSI at 49 is in neutral territory; this picture suggests downward pressure may persist. However, support near the SMA50 (11143) and a neutral RSI make a limited pullback more likely than a sharp decline. Therefore, although I see the direction as downward, I keep confidence at a moderate level.

NVDA fell more than 12% intraday, hit hard by a broad selloff across the chip sector; its RSI stands at 17.7, placing it in oversold territory, while MACD is negative and below its signal line. The price is markedly below both the SMA20 and SMA50, indicating a short-term downtrend. Oversold conditions could set the stage for bargain-hunting rebounds, but the news flow is weighing on risk appetite across the sector. Over the 1-3 day horizon, downward pressure may persist; nevertheless, given the possibility of rebound buying, confidence is moderate.

AMD fell sharply by more than 16% in 24 hours to 402.5, with its RSI at 23 entering oversold territory. The price is significantly below the SMA20 (466) and SMA50 (506); MACD is negative and below the signal line, indicating weak momentum. The news headline confirms widespread selling in the chip sector, suggesting that downward pressure may persist in the short term. However, oversold conditions could trigger short-term volatility through bargain hunting; therefore, while the direction is downward, confidence should be kept at a moderate level. In the 1-3 day outlook, weakness prevails, yet the risk of a rebound after the sharp decline should not be ignored.

The NDX fell 6.2% over 24 hours in a sharp sell-off, and news of a collapse in chip companies confirms the move. With RSI at 22.4, the index is in oversold territory; this could set the stage for short-term rebound buying, but the trend remains downward. MACD is below its signal line and in negative territory, while price is trading markedly below SMA20 and SMA50. As the news flow is negative, downward pressure may persist over the next 1-3 days; nevertheless, choppy and volatile trading should be expected due to the oversold condition. Although the direction is skewed to the downside, the possibility of rebound buying limits confidence.