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Rotation hits tech again, Bitcoin struggles to hold $87K

The rotation out of tech continues to pressure the Nasdaq, while risk appetite remains muted ahead of a busy schedule for the week, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

🔗 Source

💡 DMK Insight

The ongoing rotation out of tech is a critical signal for traders navigating the Nasdaq’s volatility. With risk appetite dwindling, this trend could lead to further declines in tech-heavy indices, particularly as earnings reports and economic data loom this week. Traders should be cautious, as a sustained pullback could trigger stop-loss orders and exacerbate selling pressure. Look for key support levels in the Nasdaq; if it breaks below recent lows, it could signal a deeper correction. On the flip side, this might create buying opportunities in undervalued sectors as capital flows shift. Keep an eye on the broader market sentiment and any shifts in economic indicators that could influence risk appetite moving forward.

📮 Takeaway

Watch for Nasdaq support levels; a break below recent lows could signal deeper corrections, while sector rotations may offer buying opportunities.

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