The S&P and Nasdaq 100 are trying to tilt the technical bias back to the upside after their recent declines found buyers near key support. That is a start. The next step is to reclaim resistance, hold those breaks, and build on the upside momentum.
The technical picture is improving, but the progress is different for each index. Meanwhile, Meta continues to struggle, even as Nvidia, Apple, and Microsoft trade higher.
In the video above, I take a technical look at each and outline the good, the bad, and the levels that will help define the bias, risk, and targets going forward.
S&P: Buyers push above the hourly moving averages
The S&P has moved above its 200-hour moving average at 7721.11 and its 100-hour moving average at 7731.82, reaching a session high of 7736.06.
Those breaks give the buyers a more bullish tilt after the declines over the last few days took the index back toward its 100-day moving average near 7606.37. Buyers leaned against that support and have since pushed the price back above the shorter-term moving averages.
That is how a recovery starts to build a stronger technical foundation. Support holds below. Resistance gets broken above. The buyers collect more clues that suggest they are taking back control.
However, getting above the moving averages is only part of the job. Staying above them is what matters next.
The 100-hour moving average at 7731.82 is now the first close barometer, followed by the 200-hour moving average at 7721.11. Hold above both, and buyers have a platform for another push higher. Fall back below both, and the breakout loses credibility, raising the risk of another failed upside move.
Nasdaq 100: Back above the 100-day moving average, with more work ahead
The Nasdaq 100’s low last Thursday stalled near the 28822–28953 swing area. That support attracted buyers, and the recovery continued through Friday and Monday.
Today, the buyers took another step by pushing the price above the 100-day moving average at 29551.54. The index reached a high of 29713.27 and is currently trading near 29692, still above that key daily moving average.
For now, 29551.54 becomes the downside barometer. Staying above it keeps the recovery moving in the buyers’ favor. A move back below would weaken today’s bullish development.
On the topside, the next targets are clearly defined:
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29944: The 100-hour moving average.
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30187: The 200-hour moving average.
Unlike the S&P, the Nasdaq 100 still has those hourly moving averages overhead. Reclaiming the 100-day moving average is a positive clue. Getting above the 100-hour and then the 200-hour moving averages would give the buyers more control.
Meta: Sellers remain in control below the daily moving averages (but is a short term bottom near?)
Meta is moving in the opposite direction.
After falling sharply yesterday while the broader market improved, the shares are under pressure again today. The price has moved below both its 100-day moving average at $630.87 and its 200-day moving average at $632.33.
At the current price of $625.80, Meta is down $4.78 on the day.
Those two moving averages now form a key resistance area. As long as the price remains below $630.87–$632.33, the technical bias favors the sellers. Buyers need to reclaim that area—and stay above it—to provide an initial signal that the selling pressure is easing.
There is, however, a potential support story developing below.
The decline has brought Meta back toward the $605–$625 range established the day after the Muse launch. Will buyers view that area as an opportunity to define their risk against the lower boundary at $605?
That depends on their risk tolerance. Using $605 to define risk from the current price leaves a sizable distance to that level. A move into the range alone does not confirm that a bottom is forming.
For traders looking for technical confirmation, a sustained move back above the 100-day and 200-day moving averages would be the first improvement to watch. Until then, the sellers retain control.
Nvidia, Apple, and Microsoft offer more positive clues
In the video, I also look at Nvidia, Apple, and Microsoft. Each is trading higher on the day and showing additional bullish technical clues.
For each, the focus is the same: What is the bias? Where is the close risk? And what targets need to be broken to keep the buyers moving forward?
This article was written by Greg Michalowski at investinglive.com.