In yesterday’s note, we expected prints below 29000 to accelerate a pullback lower, however did not expect a rout in tech stocks to wipe off $750 billion from the Nasdaq as the Dow closed 2.45% lower at 28374. Today investors await U.S. Nonfarm payroll data which should provide some answers on whether this was a risk off move, or simply some profit taking ahead of expected volatility. Failure to print an hourly close above 28374 will keep the bears in control favoring a retest of 28125 support level.
Support: 28125 / 28000
Resistance: 28300 /28500 / 28750
