The major US stock indices are higher with the NASDAQ index leading the way with a gain of around 0.72%. Looking at the daily chart, the price today did dip back below its 100-day moving average at 15620.60. The low price reached 15604.73. However, the price could not stay below that level and has rotated back toward the highs for the day.
Yesterday, the price also fell below it’s 100-day moving average only to rebounded and closed just above the MA at the close. Two tries and two misses to take th price lower and tilt the technicals more to the downside.
The buyers are still in play from a technical perspective. It would take a movable of 100-day moving average to disappoint the buyers (at least in the short term.
On the topside off the daily chart above, the 50 day moving average is is at 16053.07. Ultimately it would take a move above the moving average to give the buyers more confidence and more control from a technical perspective.
Looking back at the correction from the April high, the low price extended to 15222.78. That was good enough for a decline of 8% from its March all-time high price. It’s not 10% but greater than 5%. Was it good enough? Stay above the 100 day MA and things would look good technically.
This article was written by Greg Michalowski at www.forexlive.com.
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