Nasdaq Selloff Deepens as Chip Stocks Near Support and Market Risk Builds

The market is under real pressure right now. The Nasdaq Composite Index (IXIC) is down about 2%, the S&P 500 Index (SPX) is down about 1%, and the Nasdaq 100 E-mini Futures (NQ) are lower by 585 points.

The main source of weakness is still semiconductors, but the selling is beginning to spread into other major stocks. Fear is rising, and while that usually feels uncomfortable, it can also clear out weaker positions and create the conditions for a sharp rebound.

On the Nasdaq, 25,000 is the main level to watch. It lines up with two previous pivot lows and a major psychological number. If the Nasdaq holds 25,000, we could see a bounce. If it breaks below it, the next support is around 24,000.

The S&P 500 is also testing an important trend line that goes back to the 2021 bull market. That line has already been tested twice. The more often support gets tested, the weaker it becomes. A break below it would create a failed breakout and could lead to much broader market weakness.

Now, the semiconductor decline is getting interesting because some names are finally approaching levels where rebound trades may begin to make sense.

Micron Technology, Inc. (MU) has a major support zone between $815 and the gap fill near $750. It nearly dropped below $800 before bouncing. If Micron moves below $800 again, that is where small long positions may begin to look attractive.

This does not mean Micron has reached its final bottom. The larger semiconductor cycle could eventually produce declines of 70% to 75%. But even during a larger collapse, individual stocks can still rally 20% to 25%, and that is the opportunity being watched.

Micron previously traded above $1,200, while some analysts were discussing price targets near $2,000. Sandisk Corporation (SNDK) traded above $2,000, with targets as high as $2,700 and $3,000. Those extreme upgrades came after gains of roughly 300% within the year, which was a warning that expectations had become unrealistic.

Sandisk now has major support between roughly $1,285 and $1,200. Marvell Technology, Inc. (MRVL) has already fallen more than 40% and is also moving into an area where a rebound could develop.

Space Exploration Technologies Corp. (SPCX) remains much harder to trade. The stock dropped sharply after a launch was scrubbed, but there is not enough chart history to identify reliable support. The only level that stands out is $100 because it is a major psychological number. That is not a prediction that SpaceX will fall to $100. It simply means there is not enough technical evidence to justify buying it above that level right now.

Oracle Corporation (ORCL) is another name worth watching near $120, where two technical support lines meet. Unlike the memory stocks, which were driven by extreme optimism, Oracle is now surrounded by extreme pessimism. That does not guarantee a bottom, but fear combined with strong technical support can create an opportunity.

In commodities, gold traded as low as $3,959, with support just below $3,900. Silver came within $0.77 of the first target at $54. The broader accumulation zone remains between $54 and $46.

Oil is moving higher as tensions between the United States and Iran worsen. Major resistance is around $87. A rejection there could eventually send oil back toward $70 or below $70 per barrel.

Finally, Bitcoin (BTC) has moved back below the neckline of its inverse head and shoulders pattern. The breakout was never confirmed, so the pattern could still fail. But Bitcoin has performed better than the stock market, gold, and silver since the beginning of July. If the Nasdaq stabilizes and begins to bounce, Bitcoin could quickly recover above the neckline.

The Bottom Line: Volatility is increasing, the broader market is vulnerable, but selected semiconductor stocks are approaching levels where powerful rebound trades may develop. The goal is not to call the final bottom. It is to recognize when fear has become extreme enough to create a tradeable opportunity.