Nasdaq index keeps below the 100 hour MA
U.S. stocks have reversed lower after rebounding into key technical resistance.
For the Nasdaq, that resistance came at the 100-hour moving average, currently at 25,969.10. The recovery from today’s low carried the index right up to that level, but, true to the technical picture, sellers leaned against the moving average and forced prices back lower.
The Nasdaq is now down 346 points (-1.32%) at 25,776. The next downside target comes in at Friday’s swing low near 25,650. A break below that level would increase the bearish bias.
It’s also worth noting that yesterday’s rally stalled at the higher 200-hour moving average (green line), keeping sellers firmly in control. Today’s rejection at the 100-hour moving average reinforces that technical resistance remains intact.
The broader market has also turned lower. The Dow Jones Industrial Average, which closed at a record high yesterday, is down 220 points (-0.43%) at 52,840, putting another record close out of reach for now. Meanwhile, the S&P 500 is lower by 46 points (-0.61%) at 7,492.
This article was written by Greg Michalowski at investinglive.com.