The S&P index is now down -82 points or -2.05% at 3913.31. That is taken the price back below its 100 day moving average of 3930.87. A close below that level would be the first since November 9.
On Wednesday, the price moved up and took out the December 1 high but only by the smallest of margins. The December 1 high reached 4100.51. The high price after the CPI data reached 4100.96. The price close below its 200 day moving average on Wednesday, and extended lower yesterday. Today we are seeing even more selling taken the price below the key 100 day moving average.
On the downside the 38.2% retracement of the move up from the October low comes in at 3868.18. That would be the next downside target on further selling momentum.
Looking at the hourly chart below, the price also move below its 200 hour moving average (green line in the chart below). That level comes in at 3948.47. Of note is that the price lows from December 6, December 7 and December 12 all bottomed near the 200 hour moving average. Today with the break, that tilt supplies back to the downside technically and sets the level as a risk defining level going forward
With the 100 day moving average at 3930.87 and the 200 hour moving average of 3948.47, that area will be topside resistance on any rebound today from a technical perspective.
The more hawkish Fed was joined by the more hawkish ECB today which has traders worried about slowing growth leading to lower earnings .
The Dow Industrial Average is now down 641 points or -1.88% while the NASDAQ index is down -265 points or -2.38%. The Russell 2000 is down -1.62%.
In Europe:
- German DAX is down -2.84%
- France's CAC is down -2.7%
- Spain's Ibex is down -1.45%
- Italy's FTSE MIB is down -2.76%
