What are the technicals saying
The US stocks are having rough day of it today. The news that China has added spying chips to some Apple and Amazon products been a catalyst. Maybe you blame the run up in rates as well or the more hawkish talk from Fed's Powell. The selling is picking up some steam.
The S&P is down close to 30 points or -1.03%
The Nasdaq is down close to 150 points or -1.87%
The Dow is down 291 points or -1.09%
There is no hiding.
Technically, the Nasdaq index has cracked below its 50 day MA. That MA - apart from a few minor dips that failed at the end of July - has acted as a level of support. It was broken today at 7920.84 and trades at 7871 currently. That MA is now risk with the 100 day MA at 774 a target.
The S&P index is still above its 50 day MA down at 2876.03 today. Back at the end of July was when it, and the 100 day MA (blue line) was tested around the 2700 level. The index is much higher now at 2894 currently.
Another leveraged hedging instrument for some is the Ultra Short QQQ ETF. This is supposed to double (or more) the % impact of the QQQ (a widely held and traded exchange-traded fund (ETF) that tracks the Nasdaq 100 Index) . The SQQQ rises when the QQQ goes down as it is the equivalent of a short position, but on steriods
Anyway, the SQQQ is up 0.61% or 5.4% and looks to test its 50 day MA at $11.91.
