With Fed Governor bringing the fire truck in to douse the flames of a too hot stock market over the weekend, the major indices are opening weaker. Yields are higher which has pressured the Nasdaq stocks. The flow of funds is back into the Dow stocks after they relatively underperformed last week.
The snapshot of the market 9 minutes into the open is showing:
- Dow industrial average is up 42.19 points or 0.13% at 33790.06.
- S&P index is down -13.24 points or -0.33% and 3979.68
- NASDAQ index is down 108.89 points or -0.96% and 11214.44
- Russell 2000 is down -12.54 points or -0.67% at 1870.19
Looking at the S&P index on the daily chart below, the price on Friday raced above the 50% midpoint of the move down from the August high and it's 100 day moving average. Both those levels currently, and 3908.43. However the high price stalled near the 4000 level, and just below the 61.8% retracement of the same move down at 4006.81. Getting above that 4000 level and 4006 retracement would have traders targeting the 200 day moving average of 4078.78 currently. That MA target has a number of analysts and traders looking toward it as a potential peak. Back in August, the price stalled against that moving average as well (albeit at a higher level).
