The declines in the Nasdaq has tilted the short term bias more into neutral territory. S&P remains more bullish.
The NASDAQ Composite is down 0.90%, while the S&P 500 is lower by 0.40% in early trading.
From a technical perspective, the NASDAQ Composite has slipped back below its 200-hour moving average at 26,088.24, but remains above the 100-hour moving average at 25,873.74. Trading between those two key moving averages shifts the short-term bias back to neutral, with buyers and sellers battling for control. A move back above the 200-hour moving average would restore the bullish bias, while a break below the 100-hour moving average at 25,873.74 would hand sellers greater control and increase the downside risk.
For the S&P 500, Friday’s rally stalled at the June 15 swing high near 7,575.50, where willing sellers once again stepped in. Today’s modest gap lower leaves a potential double-top in place at that level. As long as the price remains below 7,575.50, sellers have an opportunity to probe lower. That said, meaningful support is still some distance away, with the 200-hour moving average at 7,472.92 followed by the 100-hour moving average at 7,463.47.
In the video above, I walk through the key technical levels driving the bias, risks, and targets for both the NASDAQ Composite and the S&P 500.
This article was written by fl932d6e52a19643278e0f123bca7198f5 at investinglive.com.