The 3 major stock indices are moving higher in early US trading and in the process, keeping the momentum going from last week’s trading.
A snapshot of the major indices 9 minutes into the open is showing:
- Dow industrial average of 57.63 points or 0.17% at 34118.96
- S&P index up 10.73 points or 0.25% at 4369.08
- NASDAQ index up 69.37 points or 0.51% at 13547.65
Looking at the daily chart of the NASDAQ index below, the price is approaching its 100-day moving average at 13618.59.
Recall that on October 11, the price moved back above that moving average level (at 13602 at the time) and closed above. However, the very next day the price reversed lower and stayed below that level the decline took the price below its 200-day moving average on October 26 reaching a low of 12543.86. That was the lowest level going back to May 24.
However, the price moved back above the 200-day moving average on October 31 and has continued that momentum into today. Getting above the 100-day moving average would be a key bullish shift. The level is also a key barometer for both buyers and sellers. Staying below is more bearish. Moving above would be more bullish.
For the S&P index, it’s 100-day moving average is at 4403.18. With the price at 4369.08, it still is about 34 points away from that key target and technical barometer.
Looking at the daily chart of the S&P below, the price of the S&P index gapped below its 100-day moving average back on September 21, and has stayed below that moving average since that time. Needless to say it represents a key barometer for both buyers and sellers going forward. On further momentum, there should be willing sellers against that moving average. Be aware.
This article was written by Greg Michalowski at www.forexlive.com. Source