The major US stock indices are trading lower to start the new day and the new trading week. The declines are modest but across the board.
Looking at the major indices:
- Dow industrial average -100 points or -0.22% at 45528
- S&P index -15.80 points or -0.24% at 6451.31
- NASDAQ index -68 points or -0.32% at 21426.
- Russell 2000-10.39 points or -0.44% at 2351.43
The NASDAQ index dipped to a low of 21,400.08 in early trading, putting it right on top of its 100-hour moving average at 21,390.02. That level now serves as the immediate barometer for buyers and sellers. A break below would likely invite fresh downside momentum on the disappointment back above that short-term moving average.
Looking back, the index slid under both the 100-hour and 200-hour moving averages (blue and green lines on the chart below) last week, with the latter (green line) currently at 21,187. However, Friday’s rally following Chair Powell’s Jackson Hole speech saw the price recover sharply, lifting back above both key moving averages.
For now, holding above the 100-hour MA at 21,390 keeps the short-term bias tilted to the upside. Conversely, a sustained move back below would hand some control back to the sellers and risk a retest of deeper support levels 200 hour moving average at 21187.33.
This article was written by Greg Michalowski at investinglive.com.