Nvidia Selloff Spreads to Asian Markets: Nasdaq Futures Decline

NVDA fell 7.2% in 24 hours, closing near its 20-day simple moving average (SMA20) at 173.5 and well below its 50-day SMA (SMA50) at 187; the short-term trend is weak. The RSI at 41 is in neutral-to-weak territory, while the MACD is negative and below its signal line, confirming downward momentum. News reports indicate the selloff has spread to Asia and that Nasdaq futures have declined, signaling continued deterioration in risk appetite. This combination increases the likelihood that downward pressure will persist over the 1-3 day outlook, though it should be noted that the decline may be limited because the RSI is not in oversold territory and there is potential support around the SMA20. Nevertheless, bargain-hunting buying could emerge; confidence is therefore kept at a moderate level.

NDX has posted a strong gain of about 4.8% over the past 24 hours and, with an RSI of 61, is approaching overbought territory. Although MACD remains positive above its signal line, the risk of profit-taking has increased after such a rapid rally. The spread of Nvidia selling to Asia and the pullback in Nasdaq futures could weigh on the tech-heavy index in the short term. Since the price remains above the SMA20 and SMA50, the medium-term trend has not been broken; therefore, downside expectations should be kept limited. In the short term, a slightly lower opening and volatility are the most likely scenario.

The spread of Nvidia-driven selling pressure to Asia and the pullback in Nasdaq futures are weakening short-term risk appetite for NDAQ. On the technical side, the price is above the SMA20 and SMA50, the RSI at 58 sits in neutral-to-positive territory, and the MACD is slightly above its signal line; in other words, momentum has not yet deteriorated. However, since the news flow could create pressure on technology-heavy indices, downside risk stands out in the 1-3 day outlook. A limited pullback and volatility are more likely than a sharp decline. The SMA20 (~109.3) should be watched as the first support level.