The major US stock indices are trading to new session lows and in the processs, testing the 100 hour MAs.The declines are being led by the Nasdaq which is down -2.10%.
Each of the major indices reached new cycle highs off of the October lows during Thursday's trading day. On Friday, the indices open the lower but rebounded in close modestly lower on the day after the stronger-than-expected jobs report.
Today the better ISM nonmanufacturing Index has helped to send yields higher with the 10 year now up 10 basis points at 3.603%. The two-year note is up 11 basis points at 4.39%.
That has helped to push the major indices back to the downside and toward their first target hourly moving average (blue line representing the 100 hour moving average).
- Nasdaq: The NASDAQ index is trading near its lows for the day. The price low came in at 11215.59. That got within a few points of its 100 hour moving average (blue line) currently at 11209.16. A move below that moving average would have traders targeting the 38.2% retracement of the move up from the November low. That comes in a 11059.42. Below that is the rising 200 hour moving average at 11014.62 (green line in the chart above).
- S&P: The S&P index is also down testing its 100 hour moving average. That moving average comes in at 3991.52. The low for the day reached 3991.49 - just below the moving average level. The price has bounced modestly and currently trades at 3997. A move below the level would target the lows going back to the end of November near 3937.65. Below that is the rising 200 hour moving average at 3915.21. The last time the price traded below the 200 hour moving averages back on November 4.
- Dow Jones industrial average: The Dow 30 stock index is also down testing its 100 hour moving average. That moving average comes in at 33909.03. The low price extended just below that level at 33891.11 and has bounced modestly. The current price is trading just above the moving average level at 33930. A move below the 100 hour moving average would target the swing lows from November 30 near 33583.77. Below that and the rising 200 hour moving average at 33254.05 (green line in the chart above) would be targeted.