If anything, Wall Street can take heart in the bounce from yesterday even if dip buyers fell short of a stronger recovery momentum. However, we’re seeing some pushback now as US futures turn positive on the day.
S&P 500 futures were down by as much as 0.7% earlier in the session but are now rallying back to be up 0.2% on the day. That’s quite the turnaround in terms of sentiment. Looking at big tech, Nvidia shares are up over 1% in pre-market with Tesla shares also sizing up similar gains at the open. Of note, both are seeing rebounds off their respective 200-day moving averages so that is something to take note of.
The US-Iran conflict remains in focus and while there are technical suggestions for a potential downside break, it’s not as convincing just yet:
“In terms of the technicals, there is a chink in the armor now when viewing the S&P 500. I would argue it’s not as clear as saying that this is the start of a strong correction lower. However, there is an opportunity for sellers to step in and take their shot. But at the end of the day, it all hinges on tech shares more than anything else.”
As mentioned in the linked post, the Nasdaq might be the one holding the key and there is a line in the sand that sellers must cross to really convince of a stronger breakdown in US stocks:
“The index has been struggling below its 100-day moving average (red line) since February. However, dip buyers have been hanging in there in not letting price action sink further towards really testing the November low or the 200-day moving average (blue line) just yet. As such, those two levels will be the key line in the sand in sizing up big tech sentiment in Wall Street. In essence, that’s the floor to the bull market run since May last year
