US equity markets are under pressure and this leaves the Tech sector and Small Caps retesting their lows for the year, says David Sneddon and his team at Credit Suisse in London.

Key support for the Nasdaq 100 remains at the 38.2% retracement of the 2020 to 2021 bull trend and the lower end of the “typical” extreme at 12948/840 (see Chart). Although a fresh hold here should be allowed for, downside momentum remains strong and Sneddon sees the risk of a clear break lower. This would then raise the prospect of a more significant fall to the 50% retracement of the 2020 to 2021 uptrend at 11768.

See Chart.