A look at the daily charts for each
The US stocks area trading at new session lows as the early push higher on the Fed actions fizzle with coronavirus fears.
Looking at the Nasdaq index, the index just moved to a new session low at 6690.00. That just took out the earlier session low at 6717.352. The index is moving closer to the 38.2% retracement of the move up from the 2009 swing low. That level comes in at 6563.543. On a move below that level going forward, the December 2018 swing low at 6190.166 will be eyed.
On the topside, the close resistance comes in against its 200 week moving average at 6988.66. On Friday, the price closed below that weekly moving average for the 1st time since 2010. Needless to say, stay below that level this week and the bears remain in control. The high today at 6933.195 came up short of that level.
For the S&P it too reached a new session low at 2209.32 (currently at 2212.18). That index fell and closed below a trend line last week currently at 2413.55, and the 38.2% retracement of the move up from the 2009 low price at 2346.70. Those levels are the risk levels for shorts now. Stay below and the bears remain in full control. On the downside, the low price from the end of 2016 at 2100 area and the 50% retracement 2025.94 are downside targets. As a point of reference, a move to the 50% retracement at 2025.94 would equate to about a 40% decline from the 2020 high.
Meanwhile, the Dow has now erased all the gains since President Trump took office on November 8, 2016 and looks to test the 50% of the move up from the 2009 low at 18019.26. The low today reached 18222.78.
The technical picture is not all that great for each of the major indices.
