Bears Return as Tech Tumbles

The stock market had its four-session winning streak snapped on Thursday, with all four of the major indexes pulling back following Meta Platforms (FB) weak outlook. Shares plummeted 26% while wiping out more than $200 billion from its market value.

Economic news was also a factor as initial claims for unemployment benefits dropped 23,000 to 238,000 versus forecasts for a print of 245,000. Volatility spiked 10% after closing higher for the second-straight session.

The Nasdaq settled at 13,878 (-3.7%) with the low hitting 13,851. Prior and upper support at 14,000-13,850 was breached and failed to hold. A fade below the latter would signal a further slide towards 13,750-13,600.

The S&P 500 traded down to 4,470 before ending at 4,477 (-2.4%). Near-term and upper support at 4,475-4,450 was tripped but held. A close below the latter and the 200-day moving average gets downside risk towards 4,425-4,400 back in play.

The Russell 2000 tagged a low of 1,988 while finishing at 1,991 (-1.9%). Key support at 2,000 failed to hold. Continued closes below this level would suggest ongoing weakness towards 1,975-1,950. Below is a chart of the IWM.

The Dow closed at 35,111 (-1.5%) after testing a late day low of 35,071. Upper support at 35,250-35,000 failed to hold. A drop below the latter and the 200-day moving average would indicate a retest towards 34,750-34,500.