Nas100 Correction: Why a Drop Below 20K is Likely

Since reaching its recent all-time high of 22,232, the NAS100 has dropped 1,000 points. While this might seem like a significant decline, it actually represents less than a 5% correction—hardly a major pullback.

This drop has brought the index into a key confluence support zone, raising the common question: Is the correction over?

In my opinion, it’s not. For a healthy correction, a dip below 20,000 is necessary.

Technical Perspective
🔹 Since the "bullish" event marked by Trump’s election, the index hasn’t made substantial progress. While it has technically risen, the gains have been marginal, suggesting more distribution than true bullish strength.
🔹 The index remains confined within a large rising wedge, as seen on the chart. This type of structure often signals topping and potential reversal rather than sustainable upside momentum.

What’s Next?
In the medium term, I expect a drop below 20,000. For traders looking to speculatively trade the Nas100, potential sell zones would be around 22,000 and 23,000— in the event of a new all-time high.