Stocks under pressure. Nasdaq approaches it 200-hour moving average

The major stock indices are lower with the Nasdaq index leading the way again.

That index moved down to a low of 14613.18. At the low the index was down close to 1%. Technically, the index is approaching the 200-hour MA at 14575.79 (green line on the charts above). Yesterday, the index moved below the 100-hour MA (blue line currently at 14889.42). The last time the Nasdaq index was below both those MAs was back to November 1 (see blue and green lines on the chart above).

For the S&P index, today it is moving away from its 100-hour MA at 4737.23 (blue line in the chart below). Yesterday, the price traded above and below that MA level but closed just above the level keeping the buyers hopeful. Today, the lower opening is giving sellers the short term control. Staying below is more bearish technically. NOTE that the last time the market tested that MA on December 6th, it found willing buyers. That increased the levels importance technically. Moving below shifts the bias to the downside.

The 200-hour MA in the S&P comes in at 4651.71 and is the next major target. Like the Nasdaq, the price of the S&P has not traded below the 100 and 200-hour MA since November 1.

This article was written by Greg Michalowski at Source