The NASDAQ index is falling to new session lows. The index is currently down -101 points or -0.73% at 13609. In doing so the price is trading at its lowest level since August 25.
Technically looking at the hourly chart above, the price yesterday rallied to and through its 200-hour moving average currently at 13735.69 (green line in the chart above). However, the momentum could not be sustained and the price wandered lower into the close (a close near unchanged on the day). Stay below that 200-hour moving average keeps the sellers more in control technically.
Today the price opened lower and has moved to lower in the first 40 or so minutes of trading. That has now taken the price below the 50% midpoint of the move up from the August low to the September high. That level comes in at 13655.69.
It would take a move back above that level today to now take some of the pressure off the downside. However, getting back above the 200-hour moving average at 13735.69, and then the 100-hour moving average at 13875.00 (blue line in the chart above) would be required to give the buyers more control.
On the downside, the next target comes in at the 61.8% retracement of the move up from the August low. That level comes in at 13539.13.
Concerns for the market:
- FOMC rate decision tomorrow. Higher inflation.
- Slower growth. TSMC warns of lower chip demand
- Increasing budget deficit
- Higher yields. The 10-year yield is near the highest level going back to 2007