This is a major interest area, if we fall through this area then Nasdaq IMO is in bear market territory.
If you mean 20% drop, well, the thing is 1000 points down. 1400 points down would be the classic correction of 10%. You think it would trap door down to 20% if we fall past the 10% mark of ~12,600?
I shouldn't have typed bear trend, but substantial further decline. This is an interesting chart of Wiltshire 5000 market cap $42.2T It added around 27% pre-covid to now, and that's in a space of 1 year, that's mental & probably unrealistic to expect to keep on advancing. When world of finance realized that half of population not gonna die from COVID-19, phenomenal amounts of cash flooded equities market, hence the result IMO.
I think we definitely make a pit stop there for various technical reasons but ultimately land closer to the low / mid 3800's before seeing a rally that actually lasts more than a few days.