While the current negative attitude is “bullish,” the longer-term fundamental and technical dynamics indicate that a further correction is possible. As previously stated, the negative mood levels could underpin a rise in the coming months. This would entice investors into the market just as the fundamental and technical backdrops become more pessimistic.

Chart below shows Events everytime nasdaq composite 100 index dropped 100 Week moving average.

Nasdaq 100 composite index vs 100 week moving average
2000-2001Dotcom Bubble
2007-2008Housing market collapse financial crisis
2012EU Debt crisis
2016CNY Devaluation and Brexit
2018Federal reserve taper tantrum
2022Inflation/War/Fed credibility issue / “Putin’s fault”