The NASDAQ index is trading lower by nearly 1% today, pulling back from the all-time high reached last Wednesday. The decline has brought the index closer to a key technical level — the rising 100-hour moving average, now at 21,325.57.
This moving average has played an important role recently. The index last fell below it on July 31, but quickly recovered, climbing back above on August 6 and using it as a springboard for the run to the record high at 21,803.75.
Should the index slip below the 100-hour moving average once again, traders will shift focus to the 200-hour moving average at 21,105.00. That level also has history: on August 1, the index briefly dipped below the 200-hour average before snapping back higher.
For traders, today’s price action will help determine whether the current move is simply a pullback within an uptrend or the start of a deeper correction
