That is the key question for the market today after the bounce yesterday
US futures are continuing to look indecisive so far in the day, with an early bounce being sold into before a second bounce is starting to fizzle once again.
Nasdaq and S&P 500 futures are down by ~0.5% now ahead of North American trading.
Stocks may have snapped the losing streak in trading yesterday, but the bounce is hardly a signal of confidence just yet with the rebound in the Nasdaq still keeping under its key hourly moving averages i.e. near-term bias still more bearish:
Essentially, the market is looking towards tech stocks and their resilience right now as to whether or not this rout can run any deeper. Hence, the focus on the Nasdaq remains one of the key themes as we look to round off the week.
The big question right now is whether this is the going to end up being another buy-the-dip territory for buyers or if we are seeing them jump into the deep end.
Both camps are as loud as ever right now and we can only be guided by the technical levels to try and figure out which side ends up being right here.
A push back above the 200-hour MA (blue line) in the Nasdaq will be crucial to cement any potential return back towards 12,000 and that will bode well for risk assets.
But I reckon a fall below the low posted on Tuesday could easily send risk assets into yet another tailspin with a deeper 'correction' set to unfold.
