The Nasdaq 100 has closed below its 50-DMA for the first time since May and broken a multi-month ascending trend line, signalling renewed downside pressure, Société Générale's FX analysts note, Société Générale's FX analysts note.

Downside momentum builds as Nasdaq 100 loses trend line

"Nasdaq 100 has given up the 50-DMA first time since May and has breached a multi-month ascending trend line highlighting resurgence in downward momentum. Daily MACD has been posting negative divergence and has dipped below the equilibrium line. The index is now challenging October lows."

"The lower limit of a steep descending channel at 24080/23970pts is next support. A brief bounce is likely however failure to overcome recent lower high at 25650pts may result in continuation of down move. If the index fails to defend 24080/23970pts, an extended pullback is likely."