The S&P index is trading near highs up 115 points or 2.23% at 5301.95. The high price reached 5303.17 so far. That gets the price within 5.6 points of its key 100-day moving average. That moving average level comes in at 5308.75. The price last Friday bottomed near that level and bounced into the close.
However, on Monday the market gapped sharply to the downside on the back of Japan’s Nikkei 225 index index plunge. The low price reached 5119.26. Since then the price has rebounded about 3.6%.
Getting above the 100-day moving average is key for the health of the market technically.
Staying below it, and traders will be looking at this “correction” as a “correction”(if I can be redundant).
Moving above it would increase the buyers confidence.
Meanwhile, the NASDAQ index is up near 400 points or 2.46% at 16598.86. That has taken the price above the swing area target between 16442 and 16358.86. That is more bullish. The 100-day moving average at 16881.63 is the next target.
This article was written by Greg Michalowski at www.forexlive.com.
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