Nasdaq skewed to the downside amid US-Iran tensions

On July 22, the Nasdaq remained skewed to the downside as renewed US-Iran tensions and crowded tech positioning weighed on equity sentiment, data showed. Reaction pending.

28,800 support and 30,900 resistance

Rangebound trade has dominated this month after crowded long tech bets prompted deleveraging, while softer US inflation last week reduced near-term Fed tightening risk, analysts said. Price action recently bounced off a 28,800 support level; the next clear upside barrier sits near 30,900, with a deeper downside target at 26,500 if sellers regain control.

A shorter-term view shows a 4-hour bearish trendline that defines the prevailing structure; any pullback into that trendline is likely to attract sellers with defined risk above it, analysts said. On the 1-hour chart a minor upward trendline is supporting the current pullback, which buyers are using to test for higher levels within the larger downtrend.

Market participants are watching macro data this week alongside headlines from the Middle East. Key scheduled releases include US Jobless Claims on July 23 and Flash US PMIs on July 24, while geopolitics could drive volatility irrespective of the economic calendar.

Monitor July 23 Jobless Claims for near-term flow and July 24 PMIs for growth sentiment shifts, analysts said.