The NASDAQ index continues to trend lower, extending its decline with the price now down about 1% on the day at 20,737. The selling pressure remains persistent, with buyers unable to generate much of a meaningful rebound, keeping the near-term bias tilted to the downside.From a technical perspective, the index is now closing in on an important support zone defined by a swing low from late July 2025 at 20,573. That level represents a key barometer for buyers and sellers. If the price can find support and stabilize there, it may signal at least a short-term pause in the decline. However, a decisive break below that level would likely trigger additional selling as stops are tripped and momentum traders press the downside.Looking further down, the next major target comes in at the 38.2% retracement of the move up from the April 2025 low, which is located at 20,491.86. This level is particularly significant from a broader technical standpoint, as it represents a deeper correction within the longer-term uptrend. A move toward that area would imply a decline of approximately 14.7% from the all-time high, putting the index firmly into correction territory.For sellers, the playbook remains straightforward: stay below broken support levels and use them as risk-defining zones. For buyers, the burden is to show they can defend these key levels. Until that happens, rallies are likely to be viewed as corrective, with the overall bias favoring further downside exploration. This article was written by Greg Michalowski at investinglive.com.