The major US indices are opening marginally lower in early US trading. The Dow industrial average is near unchanged. The S&P is down about -1.16%.
Shares were trading higher in premarket trading until Microsoft announced that they were adjusting their earnings as result of foreign-exchange. With Microsoft being a large cap stock with a corresponding large impact on the indices, it is having an impact on the overall market prices. Microsoft shares are trading down $8.42 or -3.11% at $264.07.
A snapshot of the market currently shows:
- Dow industrial average -114.69 points or -0.35% 32698.55
- S&P index -18.25 points or -0.44% at 4082.99
- NASDAQ index -72.39 points or -0.60% at 11922.07
- Russell 2000 is up 2.67 points or 0.14% at 1857.51
Last week the S&P and NASDAQ snapped a 7 week losing streak. The Dow industrial average snapped a 8 week losing streak. This week, the major indices close lower on both Tuesday and Wednesday (Monday was a holiday).
Looking at the hourly chart of the S&P, the index is testing its 200 hour moving average at 4084.40 (green line in the chart below). The low price today extended to 4080.51 just below that level. More momentum below the 200 hour moving average could see the buyers turned to sellers with the price rotating more quickly to the downside. Yesterday, the price did fall below the moving average but rebounded in the New York afternoon session.
So the battle continues today between the buyers and sellers. On the topside the 38.2% retracement of the move down from the March 29 high comes in at 4126.83. Move above that level would give the buyers some needed relief and more comfort.