The major US stock indices are moving lower today as inflation concerns continue to weigh on sentiment. Technology shares are leading the declines:
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Nasdaq Composite: down 1.15%.
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Nasdaq 100: down 1.30%.
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S&P 500: down 0.42%.
But the declines do not tell the whole story. From a technical perspective, each index has a different roadmap. Where is the risk? What would give buyers more control? What would open the door for further selling?
S&P 500: Waiting for the next shove
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The S&P remains between its 100-hour moving average at 7746.68 and its 200-hour moving average at 7706.33.
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Between those levels, the shorter-term bias is neutral. Buyers and sellers are battling it out, waiting for the next shove.
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A move above—and sustained trading above—7746.68 would tilt the bias more to the upside. A break below 7706.33 would give sellers more control.
Nasdaq Composite: Sellers have the advantage, but daily support remains
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The Nasdaq Composite is comfortably below its 200-hour moving average at 26827.18 and its 100-hour moving average at 27116.00. That keeps the shorter-term technical advantage with sellers.
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Buyers need to reclaim those levels, starting with the lower 200-hour moving average, to begin improving the technical picture.
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However, the index remains above its rising 100-day moving average at 26288.75. That is a key downside risk level. Hold above it, and buyers retain a foothold. Break below and stay below, and the door opens for further selling momentum.
Nasdaq 100: Sellers remain firmly in control
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The Nasdaq 100 has moved away from its hourly moving averages and is also breaking below its 100-day moving average at 29624.02.
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Today’s low of 29452.10 has already taken out yesterday’s low—and the previous weekly low—at 29554. Sellers have extended the downside. The question now is whether they can sustain that break.
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Staying below 29554 keeps pressure on the index. Moving back above that level would ease some immediate pressure, but buyers would still need to reclaim the 100-day moving average at 29624.02 to begin repairing the technical damage.
The lesson: Let the levels define the bias
A lower market does not automatically mean every index has the same bearish bias. The S&P is still between its hourly moving averages. The Nasdaq Composite is below those averages but holding above daily support. The Nasdaq 100 is breaking below that daily support as well.
Those differences matter. The technical levels help traders define risk, judge who has control, and identify what needs to change.
In the video above, I take a closer look at the key technical levels, the risks, and the targets, and outline the roadmap for traders.
This article was written by Greg Michalowski at investinglive.com.