The major US stock indices have turned sharply to the downside. A snapshot of the indices now shows:
- Dow industrial average -421 points or -1.25% at 33194.19
- S&P index -59.77 points or -1.38% at 4268.89
- NASDAQ index -231.8 points or -1.74% at 3081.80
- Russell 2000-9.817 points or -0.49% at 1991.10
Looking at the S&P index, the price is down testing a swing area near 14267.33.
Back at the end of February, and again last week, the price move below that level (see red numbered circles), and pushed lower. However momentum could not be sustained and the price rebound back to the upside.
On Friday, the high price on the corrective move higher stalled against the 200 hour moving average (green line in the chart above). Sellers leaned against that level and pushed the price back to the downside.
The price is now moving away from its 100 hour moving average as well at 4355.44. It would take a move back above that 100 hour moving average to tilt the bias more to the upside. Getting above the 200 hour moving average would also be key from a technical perspective. Absent breaks above those falling MAs, and the sellers are more in control.
