In the video above, I take a look at the technical picture for both the Nasdaq Composite and the Nasdaq 100. Although both indices are lower, their longer-term technical pictures are beginning to diverge.
As of 11:05 AM ET:
- The Nasdaq Composite is down approximately 1.0%.
- The Nasdaq 100 is down approximately 1.3%, with chip and AI-related shares contributing to the larger decline.
The 100-day moving averages tell different stories
The Nasdaq Composite is testing—but so far holding—its rising 100-day moving average at 25,982.22. Today’s low reached 25,992.55, just above that important support level.
That close test gives buyers a level against which they can lean. Staying above the rising 100-day moving average would keep buyers in the longer-term game. A sustained break below it, however, would weaken the technical picture and likely encourage additional selling.
What are the technicals saying for the Nasdaq 100 index?
Conversely, the Nasdaq 100 has already broken below its 100-day moving average at 29,167.25, reaching a low of 28,867.67.
That break gives sellers firmer control. The 100-day moving average now becomes resistance, and buyers must push the index back above it to take some of the bearish pressure out of the market.
The shorter-term bias is bearish for both indices
Although the 100-day moving averages show a divergence, the shorter-term technical picture is bearish for both indices. Each is trading below its 100- and 200-hour moving averages.
For the Nasdaq Composite:
- 100-hour moving average: 26,288.46
- 200-hour moving average: 26,383.01
- Friday’s close: 26,353
For the Nasdaq 100:
- 100-hour moving average: 29,321.02
- 200-hour moving average: 29,474.15
- Friday’s close: 29,368
Both indices closed Friday between their respective hourly moving averages. That suggested a more neutral short-term bias heading into today’s trading. The move below both moving averages has shifted that bias back in the sellers’ favor.
What traders should watch
Moving averages help traders define the bias and establish clear risk levels. When price is below both the 100- and 200-hour moving averages, sellers have the short-term advantage. If the indices are going to recover, they must first reclaim those hourly moving averages.
The key difference is that buyers in the Nasdaq Composite are still making a stand against the rising 100-day moving average. In the Nasdaq 100, that support has already been broken, leaving sellers with the stronger technical hand.
In short, sellers control the short-term bias in both indices, but the Nasdaq Composite remains at an important longer-term support level. The Nasdaq 100 has already crossed that line—and buyers now have more work to do.
EDUCATION: Nasdaq Composite vs. Nasdaq 100: What the Difference Tells Traders
The Nasdaq Composite includes nearly every stock listed on the Nasdaq exchange—more than 3,000 companies. Although it is heavily weighted toward technology, it also includes biotechnology, healthcare, financial and smaller growth companies.
The Nasdaq 100 is is more concentrated. It tracks 100 of the largest nonfinancial companies listed on Nasdaq and is heavily influenced by mega-cap technology, semiconductor and AI-related stocks.
That distinction helps explain today’s divergence. The Nasdaq 100’s larger decline signals greater selling pressure in the biggest technology, chip and AI names. The Composite holding its 100-day moving average suggests the broader Nasdaq market is showing slightly better resilience.
For stock traders, the comparison can provide insight into market leadership and breadth:
- If the Nasdaq 100 underperforms, the mega-cap technology leaders are generally under greater pressure.
- If the Composite holds up better, selling may not be as widespread among smaller Nasdaq-listed companies.
- If both indices break important support, it would signal broader weakness across growth stocks.
- If the Nasdaq 100 recovers and begins outperforming, it would suggest that buyers are returning to the market’s largest technology leaders.
In short, the Nasdaq 100 tells traders more about the performance of the biggest growth and technology companies, while the Nasdaq Composite provides a broader view of stocks listed on the Nasdaq exchange.
This article was written by Greg Michalowski at investinglive.com.