New York (CNBC): The Nasdaq-100 Index shed more than 2% on Tuesday, and based on one key technical indicator, it may be headed for even steeper declines.
On Monday, the tech-heavy index’s 14-day RSI reading fell below 50, breaking its longest streak above 50 on record, according to data from Sentimentrader.
RSI, or relative strength index, is a momentum indicator that measures price changes in stocks or an index in order to asses an overall trend. Readings range from 0 to 100, with a reading of 50 considered neutral. Anything above 70 signals overbought conditions, while a reading below 30 indicates something is oversold.