Stocks trade at new session lows

Stocks trade at new session lows

S&P down -1.51%. Nasdaq down -1.46%

The major stock indices are trading at session lows:

  • S&P is down -47 points or -1.76%
  • Nasdaq is down -121 points or -1.71%
  • Dow is down -500 points or -2.01%

Looking technically at the Nasdaq index, the daily chart this week rallied higher but stalled right at the 100 day MA.   The price trades between the 100 and 200 day MA (blue and green lines), but holding the 100 day MA on the correction turns the bias back lower. At the lows this week and last week, the Nasdaq did not move below the 200 day MA. Does the turn around send the index back down to the 200 day MA?  The risk is the 100 day MA for traders now.

For the S&P, the index moved below the 200 day MA on Monday and closed below that MA. On Tuesday and Wednesday, the price traded above and below the MAs, but closed back above. That gave the buyers some hope.  

However, yesterday the high stalled a good distance away from the 100 day MA (blue line). The decline today, has the index re-approaching that key MA at 2593.75.

 
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