oIn an earlier post, I spoke to the Nasdaq moving to the 100-hour MA. The price of the pair did move to and through that MA currently at 20984.43. If the price can stay above that MA, the buyers are still in control.
What’s concerning is that momentum above the 100-hour moving average in the NASDAQ has started to stall. There’s still an unfilled gap from Thursday to Friday at 21078.67—a minor detail, but traders typically want to see a clean break-and-run after such gaps. While we did see a break above the 100-hour moving average and some follow-through, the upside lacked conviction.
Meanwhile, in the other broader market indice, the S&P 500 peaked today at 6324.49, falling short of its 100-hour moving average at 6328.92. That failure to reclaim the 100-hour MA raises concerns that broader market momentum could falter—potentially dragging the NASDAQ with it. Traders will be closely watching whether the S&P can extend beyond that resistance.
On a more positive note, Friday’s S&P close was below the 200-hour moving average (green line), and today’s rebound above that level helps neutralize what could’ve been a more bearish technical picture. Had both indices opened lower rather than gapping higher, sentiment might have taken a sharper hit.
That said, there’s still nervousness that the recent correction may not have gone deep enough, keeping traders on edge.
This article was written by Greg Michalowski at investinglive.com.