The NASDAQ index has erased all of its early gains after rallying as much as 330 points in the first hour of trading (the high price reached 26259.92). The index is now trading above and below unchanged after declining -71.07 points at session lows. Price action is volatile as market reacts to news headlines.
The reversal appeared to gain momentum after reports from a Pakistani source suggested that an agreement to end the conflict in the coming days remains unlikely due to the complexity of the situation. The source cited ongoing cease-fire violations by Israel in southern Lebanon as a key obstacle. The headline seemed to dampen risk sentiment and triggered a rotation lower in equities, with the NASDAQ quickly giving back its early advance.
From a technical perspective, the move is noteworthy because the index opened by pushing back above its 200-hour moving average at 26,120.40, but has since fallen back below that level. That failure shifts the short-term bias back in favor of the sellers and reinforces the importance of the moving average as a key intraday barometer.
The market has already shown respect for this level. Yesterday, the NASDAQ briefly traded above the 200-hour moving average but lacked the momentum needed to sustain the breakout. Today’s rejection reinforces the idea that buyers still need to prove they can maintain control above that technical hurdle.
If buyers can regain momentum and push the index back above the 200-hour moving average, the next upside target would be the 100-hour moving average at 26,541.84.
On the downside, traders should remember that Friday’s sharp selloff drove the index below the 100-hour moving average and down to test a key swing area near 25,701.90. The index briefly traded below that support before recovering into the close and ending the week just above the level.
Monday’s gap higher helped distance the market from that support zone, but a failure to reclaim the 200-hour moving average could once again shift attention back toward those lower levels.
For now, the technical roadmap is fairly straightforward: the 200-hour moving average at 26,120.40 remains the key pivot level. Staying below it favors the sellers, while a move back above it would give buyers a stronger footing and put the 100-hour moving average back into focus.
The Dow remains higher by 247 points or 0.48% but is off it intraday high point of +475 points. The S&P index was as high as 77.43 points. It is currently up 16 points or 0.22% after declining to a gain of +1.95 points at the session lows.
The move lower in stocks has sent the USD off the lows. Looking at the EURUSD, sellers pushed back down and away from the 100 hour MA.
Yields remain lower with the 2 year down -2.1 basis points at 4.136%. The 10 year is down -0.5 basis points at 5.036%
