The Nasdaq Composite has been the weakest of the main US stock indices, on 05/12/22 it reached an extremely oversold condition.
The Nasdaq weekly chart courtesy of BigCharts.com- symbol (COMP) illustrates the situation.

Slow Stochastic is at the lowest level in five years.
The Nasdaq hourly Point & Figure chart courtesy of Trading View – symbol (IXIC) shows an important support level.

On 05/12/22 IXIC reached the lower boundary of five columns of Point & Figure support.
This week the decline of the main US stock indices broke several bullish divergences which increases the probabilities that the decline since January 2022 is the beginning of a larger bear market. Bear markets can have multi-week counter trend rallies.
The Nasdaq deep oversold condition while reaching an important support level are powerful ingredients for a rally.
Traders go long 100% non-leveraged SPX related funds at the SPX 05/13/22 open. Use a move below SPX 3825.00 as a stop loss for 50% of the position. Use a move below SPX 3795.00 as a stop loss on the remaining position.