Market Insights 8/01

Today, the Nasdaq initially attempted to continue its dead-cat bounce recovery, showing signs of upward movement. However, starting around 9:50 AM, institutional investors began applying pressure, causing a reversal. The breach of the 17,646 support level led to a significant decline, eventually reaching the bottom support level near 17,050, which halted today’s downward trend. As of 3:40 PM, our AI model suggests that while this support level remains intact, substantial options buying and increased short positions at these support levels may contribute to a potential gap down tomorrow. Our AI model forecasts a possible decline of 3-5% for tomorrow.