US stocks have taken a turn to the downside and in the process, the S&P index has moved down to tested their convert 100 and 200 hour moving averages. Those moving averages currently come in near 3943. The low price just reached 3945.89 just above that target. The process bounced up to 3950.55 currently.
Moving below the 100/200 day moving averages would tilt the bias towards the downside going forward. Conversely, stay above keeps the buyers in play and holding onto control some control.
Note that the S&P index tested it its 200 day moving average back on February 24 and again on March 1. On March 2, the price will below the 200 moving average only to bounce back and close above that level (it stalled ahead of the lower 100 day moving average – blue line).
Drilling to the hourly chart, the price moved higher at the open today and above the 100 hour moving average at 4002.95 (blue line). The momentum above that moving average line could not be sustained and in the last four hours has seen steady declines. The low from March 2 is the next key target at 3928.61.
If the price does bounce off the 100/200 day moving averages, getting back above the falling 100 hour moving average just above the 4000 level at 4002.94 would be needed to increase the bullish bias.
