Nasdaq 100 Breaks Below Key Technical Support As Momentum Fades

The Nasdaq 100 broke below its Ichimoku cloud, a trend-tracking indicator, in Monday's session, with its money flow index — a gauge of buying and selling pressure — falling to 9, a reading traders typically treat as oversold. The S&P 500 showed a similar loss of momentum, forming what chart watchers call a double top near 7,897.50, a pattern that often signals buyers are losing control after two failed attempts to push higher. The weakness contrasted with the Dow Jones Industrial Average, which traded in overbought territory while still sitting below its 200-day simple moving average near 52,570. That split between a stretched Dow and a fading Nasdaq points to rotation away from high-growth technology names rather than broad-based selling. Whether this marks the start of a deeper pullback or a pause within an uptrend is unresolved. The next test is whether the Nasdaq 100 can reclaim its cloud support or whether the S&P 500 breaks decisively below the double-top level near 7,897.50.