Down over 300 points on the day
The NASDAQ index is getting hit hard with the index now down -300 points at 8589.96. Recall that just 2 days ago the price was within 15 points of reaching unchanged on the year (the price closed at 8972.60 on December 31 and the high price this week reached 8957.26). The inability to move above and into positive territory is a negative/bearish technically.
Looking at the daily chart above, the price today has moved below its 50 day moving average. Earlier this week the price did Above that moving average line for the 1st time since early March. On Tuesday the price dipped and close below the level, but rally back higher on Wednesday.
Further downside momentum could see the price retest its 200 day moving average at 8426.713. A move below that level would increase the bearish bias.
Amazon is getting trashed today on the back of missing earnings and saying that they would increase spending going forward. Tesla is now getting hit after the Elon must weird tweets. Chatter is that the market is too expensive.
It's the 1st day in May. April was a stellar month with the indices rising by percentage changes not seen in decades. A correction lower in the face of next weeks employment data would certainly not be surprising. Having said that the technicals need to support the move. Watch the 50 day moving average now in this index as a close risk/bias defining level at the 8680.459 level. Stay below is more bearish
