The major US stock indices are staging a comeback after sharp declines that saw the:
- Nasdaq down over 2.38%.
- Dow down -1.42%
- S&P down -1.79%
Currently the:
- NASDAQ is down -1.29%
- Dow is down -0.65%
- S&P is down -0.9% over the last 2 days saw the price extend toward the 38.2% retracement
S&P is trading above and below its 100 hour moving average
Looking at the S&P index on the hourly chart above, the rally on Monday and Tuesday saw the price extend toward the 38.2% retracement of the move down from the September high. That level came in at 3787.27. The high price reached 3791.92 yesterday. The price rise yesterday also saw the index move back above its 100 hour moving average for the 1st time since September 12.
Today with the gap lower, the price moved back below that 100 hour moving average, but has since rebounded back above the moving average level currently at 3750.07 (see blue line in the chart above).
In the short-term the moving average will be the barometer for bullish and bearish.
- Stay above is more bullish with the 38.2% retracement at 3787.27 the next target.
- Move below and traders will start to look back toward the the lows for the day at 3722.66, and a swing area near 3718. Break below that level and traders will start to retarget the low near 3584.13 as buyers start to give up once again.
