The broader US stock indices are trading lower today, with the S&P modestly lower, the NASDAQ Composite down 0.33%, and the NASDAQ 100 down 0.65%.
Recall that all three closed at record levels last Tuesday before retreating on Wednesday and Thursday. Friday’s rebound improved the technical picture, but today’s declines are taking some of that bullish momentum away.
The key reference remains the rising 100-hour moving average. Last week’s lows held at or near that moving average for each index, giving buyers a level to lean against and keeping them in control.
Today, however, the technical stories are starting to diverge:
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S&P: The 100-hour moving average is at 7738.18. Today’s low reached 7802.58, with the index currently at 7809.96. Buyers remain in control above the moving average.
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NASDAQ Composite: The 100-hour moving average is at 27151.12. Today’s low reached 27240.47, with the index currently near 27275. The bullish bias remains intact, but the cushion above support is smaller.
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NASDAQ 100: The 100-hour moving average is at 30689.21. Today’s low extended below that level to 30633.80, giving sellers a modest technical advantage. Staying below the moving average would keep sellers more in control in the short term. Moving back above it would weaken that bearish signal.
For traders, the lesson is straightforward: a down day does not automatically change the technical bias. Where the price trades relative to support matters. The S&P and NASDAQ Composite are still holding above their key moving averages. The NASDAQ 100 has breached its support, and sellers now need to keep the price below it.
In the video above, I take a look at each index and the key levels that define the bias, limit risk, and provide the next upside or downside targets.
This article was written by Greg Michalowski at investinglive.com.