NASDAQ index trades down over 1%. Approach is a key short-term support area.

The NASDAQ index is the worst performer of the major indices with a decline of now over 1%. The move to the downside has now taken the price to a key support area.

That support area is defined by the:

  • 100 hour moving average at 13379.32 (see blue line on the chart above), and
  • A key swing area between 13364.74 and 13382.98 (see red numbered circles and yellow area on the chart above)

This area will be a key barometer for traders in the short-term. Hold support (dip buyers enter here) and a rotation back toward the 200-hour moving average (green line on the chart above) currently at 13473.82 would be eyed on a bounce.

Conversely, a break below the cluster of support and I would expect the low risk dip buyers to exit, and the door to also open door for further downside momentum from increased selling.

This article was written by Greg Michalowski at Source