Tech sector retreats; Tesla suffers a downgrade

Most sectors managed to end yesterday's session in the green, yet tech found itself leading the pack in the red this time. While consumer discretionary experienced limited losses and communication saw modest gains, the overall result was a downturn for the tech-heavy Nasdaq 100. In percentage terms, it suffered more than the S&P 500 and contrasted sharply with the Dow 30's positive finish. Closing performance highlighted a decline in Nvidia's share price, partially undoing Tuesday's impressive gains, with Tesla facing even larger losses following a downgrade by Wells Fargo.

The US offered little in terms of economic data yesterday, though the weekly mortgage applications, reported by the MBA, showed a notable increase of 7.1%. However, the economic calendar is set to become busier later today with the release of producer prices and retail sales for February, alongside the weekly claims and January's business inventories.

Treasury yields ended the session higher, reflecting positively in real terms after a strong 30-year auction (following the previous night's disappointing 10-year auction). Market pricing (CME's FedWatch) continues to indicate a hold-hold-cut trajectory for the Federal Reserve's meetings in March, May, and June.

Nasdaq Technical analysis, overview, strategies, and levels

The Nasdaq's previous first Support level held firm on several occasions, ultimately benefiting conformist buy-after-significant reversal strategies as the key level was maintained, providing more advantage than contrarian sell-breakout strategies. Despite yesterday's movements, the Nasdaq's 'bull average' technical overview remains intact. However, price-indicator proximity on the daily timeframe has led to a few at-risk technical indicators adjusting somewhat effortlessly.