The Nasdaq index is the weakest of the major stock indices today. The higher yields are weighing on the stocks in the index.
Looking at the hourly chart, the index this week moved lower on Monday and in the process broke below the 100-hour MA (blue line). By Tuesday, the price had moved back above that MA level, and the price moved to a week high at 13654.14 on Wednesday before moving back down. The low yesterday (before moving to session highs), stalled at the 100 hour MA. Buyers remained in control.
Today, the price action has seen another downward test of the 100 hour MA line. The low today reached 13540.26. The MA comes in at 13534. The Index got within 6 points of that MA level. The current price is at 13565.44.
Going forward, staying above the 100-hour MA keeps the buyers more in control at least in the short term. Conversely, move below and the sellers wrestle short-term control from the buyers. Traders will expect more downside probing once again.
This article was written by Greg Michalowski at www.forexlive.com. Source