Rebounds ahead of the February low
The S&P index gapped below the 50 day MA at 3276.45 on the opening on its way to an early low at 3231.52. The last time the 50 day MA was tested at the start of February, the price stalled and rotated higher.
The price has since rebounded and trades at 3256. That is still down -2.41% on the day, but a good ways off the lows. Nevertheless, if the price can stay below the 50 day MA, the sellers will be in control.
On the downside, the next 3 major targets technically come in at:
- 3214.68. That is the low from February 1
- 3175.25. That is the 38.2% of the move up from the August 2019 swing low
- 3162.69. That is the 100 day MA (blue line in the chart above).
To give you a reference, a move to test the 100 day MA would be a correction of about 6.7% from the all time high reached last week at 3393.52.
For the Nasdaq index it too gapped below the 50 day MA but is trading back above that MA level at 9241.74 now. It will take a move back below that MA to weaken the technical picture today.
To give an idea, the next downside targets would be
- 9088.04. The swing low from January
- 9007. 38.2% retracement
- 8783.82. The 100 day MA
A move to the 100 day MA would be a 10.76% decline from the high.