Gains can not be sustained
The major US indices have not been able to keep earlier gains and the three major indices are ending in the red:
- The S&P index is ending the session down -9.9 points or -0.38% at 2629.53
- The NASDAQ composite index is ending down -13.15 points or -0.19% at 6762.215
- The Dow industrial average is also lower by 109.34 points or -0.45% at 24,180.71.
Looking at the hourly chart of the NASDAQ composite index below, the index is closing the session below its 200 hour moving average at 6768.79.
Looking at the recent history, whenever the price has dipped below the 200 hour moving average (green line in the chart below), there was a rebound (see red boxes).
Closing below the 200 hour moving average today is more bearish, but makes tomorrow a key day for the index.
Do we bounce back above like the recent history suggests? Or do we fall and move lower?
Be aware. Key technical time for the Nasdaq index.