UsaTec took a nosedive out of the gate today, due to escalating concerns about the global economy. The sell-off steepened around midday when European Central Bank (ECB) President Mario Draghi took the stage in D.C., stoking fear of an economic slowdown across Europe.
UsaTec fell during the course of yesterday session, grinding up most of Wednesday gains with a high volume bust. The index is in a warning phase and consolidating in a wide choppy range but holding at significant daily support zone from 3915.51 to 3940.48.
Expecting downward move to a key level at 3,841.75 on a break below daily support at 3,915.51 (scenario 1) or a bounce on the daily support at 3,940.48 could push the index back up to the 3,994.25 level (scenario 2).
UsaTec is a CFD written over Nasdaq 100 futures.