S&P and Nasdaq indices show new life. What has the moves higher today done to the technicals
The broader S&P 500 and Nasdaq indices are sharply higher today, but has the rally changed the technical picture? The answer is: it has improved it, but the buyers still have work to do.
For the S&P 500, yesterday's decline took the price to the upper edge of a key support zone between 7300 and 7321, where buyers stepped in and stabilized the market into the close. Today's gap higher has created some breathing room, easing immediate downside pressure and keeping the buyers in the game.
That said, the technical hurdles remain clear. The price still needs to reclaim and hold above the 200-hour moving average at 7467.70 and the 100-hour moving average at 7476.90. A sustained move above those levels would shift near-term control back toward the buyers. Until then, the bulls can claim they defended support, but they have yet to prove they can regain control.
The Nasdaq saw an even more dramatic turnaround. Yesterday, the index broke below the important support zone between 24,913 and 25,109 and also slipped beneath its rising 100-day moving average at 24,797, giving sellers the technical advantage into the close.
Today's rebound has changed that picture. The low reached 24,813, just above the rising 100-day moving average (now at 24,798), resulting in a failed break below that key trend indicator—a technical win for the buyers. The rally then extended to 25,112.21, briefly pushing above the top of the former support zone at 25,109.39 before backing off modestly.
The index remains above the lower end of that support band at 24,913, leaving buyers and sellers battling for control around this critical area. A sustained move above 25,109 would target the falling 100-hour moving average at 25,531, followed by the 200-hour moving average at 25,709. Reclaiming both would shift the near-term bias firmly back in favor of the buyers.
On the downside, a move back below 24,913, followed by a break beneath the rising 100-day moving average at 24,798, would hand control back to the sellers and reinforce the recent bearish bias.
The bottom line is that today's rally has relieved some of the immediate technical pressure and kept the buyers alive. However, both indices remain below important short-term resistance levels. The buyers survived the latest test, but they still need to reclaim key moving averages before they can confidently say they've wrestled control back from the sellers.
This article was written by Greg Michalowski at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
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