NASDAQ index is down now 2% on the day. What damage has been done technically speaking?

The NASDAQ index is down close to 2% on the day and in the process tests the 14,000 area. That area is a key technical area going back to mid-July. The price gapped above the level and then retested the level on July 21, July 24, and again last week on July 27.

A move – with more momentum below that level – would have traders looking toward its 200-hour moving average currently at 13923.79. Break below that level and it opens a door for further selling potential.

Looking at the other major indices:

  • Dow Industrial Average’s down 231.33 points or -0.65% at 35397.13
  • S&P index is down 54.50 points or -1.19% at 4522.21

This article was written by Greg Michalowski at Source