S&P index back below its 200 hour moving average

Technical Analysis

Not an unfamiliar spot this week, but can it stick?

The S&P index is trading near its low level for the day at 3251.93. It it is currently down 31.28 points or -0.95% at 3250.27.

Technically, looking at the hourly chart above, the price highs this week stalled against the 50/100 hour MAs. Stay below has sellers in play. It will take a move back above those moving averages to hurt that bias for the shorts.  

The 200 hour moving average has been a different story this week. On Monday and again yesterday, the price has moved below that moving average, but has been able to rebound back above.   The move below today has so far stayed below the level. If the sellers can keep a lid on the pair against that moving average, that should lead to further momentum to the downside.  

On Monday the low for the week stalled against its 38.2% retracement near the 3235.61 level (of the trend move up from the December 3 low).  That would be the next key target to get to and through if the sellers are to take more control.  

The tech heavy NASDAQ index has done better. At the lows this week the index stalled against its 200 hour moving average.  The last time the price tested the 200 hour moving average was at the December 3 low and it too bounced off that level.  

Today, the price did open above its 150 hour moving averages at the 9295 area, but the index was quickly sold off and moved back below those MA levels (see blue and white line MAs in the chart below).  The current price is trading at 9223.44 after reaching a low of 9215.89.  The 200 hour moving average comes in at 9150.335.

It will take a move below the 200 hour moving average to solicit more selling momentum and tilt the bias more to the downside with the low for the week and the 38.2% retracement 9060.078 as the next major targets.  

Helping the NASDAQ index has been decent earnings and some of the big names including Apple, Amazon, Microsoft and Intel. Amazon reported after the close yesterday and still remains higher by 9.33% today.  

In the other stocks:

  • Apple is trading down -2.45%
  • Microsoft is trading down -1.27%
  • Intel is trading down -2.51%

Facebook which disappointed on Wednesday, is trading down in additional -2.84% in trading today

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