Nasdaq 100 tested and bounced of its support area just below 7,000 or 6,963 to be more accurate. (Please note a round number is not a support area just because it is a round number.)
If the rebound does not continue today and the Index closes above 7.179.
The bigger picture in the medium term
As you can see from the below weekly chart of the Nasdaq 100, there has been divergence for a very long time, since June to be precise. In other words, warning signs have been around for quite some time. Top and reversal was signalled two weeks ago with a bearish engulfing candle that confirmed a double top pattern.
The double top target was reached with the sell-off last week. The last time we saw similar divergence was prior to the 2015 volatility episode. There is still divergence that hasn't been unwound, i.e. traded out, and RSI hasn't closed below 40, so volatility should be expected.