Nasdaq Plunges in Volatile Session Amid Democrats' 'Blue Wave' Prospects

QQQ fell 6.2% in 24 hours, dropping markedly below its SMA20 and SMA50. With an RSI of 22, it is in oversold territory, and MACD is in negative territory below its signal line. The possibility of a 'blue wave' is triggering expectations of technology regulation and tax increases, weighing on risk appetite. Oversold conditions could set the stage for short-term rebound buying, but momentum remains to the downside. Downward pressure may persist for 1-3 days; volatility will be high following the sharp decline.

The NDX fell sharply by more than 6% in 24 hours to 26,647 and is trading well below its SMA20/SMA50. With an RSI of 22.4, it is in oversold territory; this could set the stage for short-term bargain hunting, but the negative MACD and signal line indicate that momentum remains downward. Political uncertainty stemming from the possibility of a 'blue wave,' along with tax and regulatory concerns, could suppress risk appetite in the tech-heavy index. Due to the oversold condition, the decline may slow and trading could become choppy; nevertheless, downside risks appear dominant in the short term. The 1-3 day outlook is cautiously negative, with possible rebound spikes.

NVDA fell 12% in 24 hours to 181.57, with its RSI at 17.7 placing it in oversold territory; this could set the stage for short-term rebound buying. However, the price is below its SMA20 (198.97) and SMA50 (205.91) and is trading negatively below the MACD signal line, meaning the trend is downward. Amid the possibility of a 'blue wave,' a sharp selloff on the Nasdaq could weigh on risk appetite for technology stocks and create additional selling pressure on NVDA. Due to the oversold condition, choppy trading and brief spikes may be seen over the next 1-3 days; nonetheless, the main direction is down. I therefore expect a cautious downward bias.