The Nasdaq index gapped lower in early trading and in doing so, fell below the 200-hour MA for the first time since November 1. That MA comes in at 14589.39. The current price is now trading at 14628.80 up 37 points or 0.26% and is trading back above that key moving average.
The gain, though modest, is better than the 1.63% decline on the first day of the trading year and the 1.18% decline on the second day. Getting above the 200-day moving average may also give dip buyers some short-term confidence on the technical break. There still is work to do to get out of the short-term darkness, however.
Recall that in trading on Tuesday, the price level opened and moved below its 100-hour moving average in the first few minutes of trading. That moving average currently comes in at 14897.87 (blue line in the chart above). Ultimately if the buyers are to take more control, getting back above that moving average would also be required.
For now, buyers are a little bit more joyous on the rebound into positive territory and back above the 200-hour moving average. Can the buyers keep that momentum going and work toward the higher 100 hour MA. Time will tell, but the technical bias levels are clear.
Meanwhile, the Dow Industrial Average is up at 263.03 points or 0.71% at 37694, and the S&P index is up 20 points or 0.43% at 4724.91.
The small-cap Russell 2000 is a trading up 11.28 points or 0.58% at 1970.48.
Looking at the US debt market, yields are up but off their highest levels.
- 2-year 4.376%, +5.8 basis points
- 5-year 3.960% +6.9 basis points
- 10 year 3.979% +7.3 basis points
- 30-year yield 4.129% +7.2 basis points
This article was written by Greg Michalowski at www.forexlive.com. Source