Yesterday, the NASDAQ index fell over -400 points at session lows. In the process, the index fell below its rising 200-hour moving average for the first time since August 1.
On August 1 (US jobs day), the price gapped lower and briefly dipped below the 200-hour moving average for the first time since April 24. However, the close back above that level—and a strong open higher on August 4—flipped momentum back to the buyers, ultimately driving the market to fresh all-time highs at 21803.75 on August 13.
Yesterday’s pullback again tested the 200-hour moving average (21140.04), but the break failed, with the market closing at 21172.86. In premarket trade today, futures imply a -87.32 point decline, which would be enough to open back below the 200-hour moving average—a shift that could hand short-term control back to sellers.
On the downside, the next key target sits at the 38.2% retracement of the rally from the June 23 low, at 20864.09. Yesterday’s low stalled just above that mark at 20905, keeping it firmly in play as a downside objective for today’s session.
Ahead is at 9:45 AM ET is:
- S&P Global Manufacturing PMI flash estimate 49.5 versus a 49.8 last month
- S&P Global services PMI flash 54.2 estimate versus 55.7
At 10 AM,
- US existing home sales for July is forecast at 3.92M versus 3.93M
- US leading index for July is expected to decline by -0.1% versus -0.3%
This article was written by Greg Michalowski at investinglive.com.