NASDAQ trades to a new low for the day

Technical Analysis

The NASDAQ index is making a new low for the day at 12682.72.

Sellers took the price away from its 100 hour moving average 12765.99 today and have been able to stay below over the 5 hours. Stay below that 100 hour moving average keeps the bears in control.

The last break below the 100 hour moving average was back on July 26. The price closed just below that moving average line for a few hours before closing for the day. However, the desk trading day, the price gapped higher and it was off to the races.

Of course the MA price is much higher than it was back then. The moving average at that time was near 11560. With the current moving average at 12766 the hurdle to get below is 10.4% higher. In other words it’s an easier hurdle to get to and through on the downside.

Nevertheless, the technical decision is “Can the price now stay below?” Time will tell but risk is defined at the MA level and sellers are putting more room between the price and the MA level.

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