Low reached to down about 100 points or -1.56%
The tech heavy Nasdaq index is taking it on the chin. At the lows it was down about 100 points or -1.56%
Technically, the price fell below its 50 day MA at 6272.12. The current price is 6256. That MA is now risk for the shorts who are looking for the long awaited correction.
Now just because the price goes below the 50 day MA, is not the end of the world. In July, the price fell below that MA, and traded below the MA line for about 5 or so days. IN April, the price dipped below for a couple days before rebounding. So the price dips and bounces.
Nevertheless, it is a bearish step. The next bearish step - should the 50 day MA stay broken - would be a move below the trend line at 6203. The 100 day MA - which has not been breached since November 2016 for 3 or so days - comes in at 6133.856. Back in November the level was at 5138. The MA is 19% higher now (or near 1000 points). So it would not be out of the question for a correction to go retest the MA, but only if the sellers keep control.
So watch the 50 day MA now. Stay below and it is more bearish. Move back above and the sellers will once again be scratching their heads.
PS the S&P index is testing its 50 day MA now at 2448.21.....
