The Nasdaq 100 Technology Index (#NDX), on 4-hour charts, is trading below the 8/8 Murray line and below the 21 SMA. On Tuesday the Nasdaq 100 made a sharp break below the strong support at 15,000 and quickly slid to the low of 14,770.

Between the 8/8 murray zone high on July 13 and around the psychological level of 15,000, and its all-time high on July 26, an ascending wedge pattern has formed. If the Nasdaq breaks below this level, it could make a bearish move to the 6/8 murray zone.

The FOMC statement and subsequent press conference are scheduled for tomorrow. We must be careful as the market can be very volatile and turbulent. According to the Fed's tone, anything can happen.

Investors do not expect the Federal Reserve to announce any changes to its policy. Some analysts believe that President Powell will give some clues about the gradual reduction of bond purchases. Any relevant announcement could quickly change the trend of the Nasdaq 100. So we should avoid exposing our trading account to too much risk.

According to the chart, the Nasdaq is under downward pressure. As long as it is below the SMA of 21, we expect it to continue with the fall below the psychological level of 15,000 points.

In addition, the sharp break of the rising wedge pattern could accelerate the decline towards the support zone of the 200 EMA located at 14,542.

Our recommendation is to wait for an attempt to break above the SAM of 21. If the index fails to consolidate above the 15,027 zone, it will be a good selling opportunity with targets at 14,800 and up to 14,542 (EMA 200).

Support and Resistance Levels for July 28 - 29, 2021

Resistance (3) 14,438

Resistance (2) 15,283

Resistance (1) 15,082

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Support (1) 14,881

Support (2) 14,727

Support (3) 14,652