A few days ago we wrote:

The sell-off over past 2 days has brought down the NASDAQ index to the lower part of the channel we have been showing previously. Note the index is trading right at the 50-day average. This is the first important support.

Price action today is impressive and NASDAQ has once again managed confusing people. The bounce on the 50-day average is impressive and a proper school book example.

We also noted how much the VXN had spiked and that it was trading too rich. Note that the “panic” to sell NASDAQ vol today is greater than the spike higher as FAANG space started shaking.

Source: charts by Bloomberg