Yesterday, the NASDAQ index fell over -400 points at session lows. In the process, the index fell below its rising 200-hour moving average for the first time since August 1.
On August 1 (US jobs day), the price gapped lower and briefly dipped below the 200-hour moving average for the first time since April 24. However, the close back above that level—and a strong open higher on August 4—flipped momentum back to the buyers, ultimately driving the market to fresh all-time highs at 21803.75 on August 13.
Yesterday’s pullback again tested the 200-hour moving average (21140.04), but the break failed, with the market closing at 21172.86. In premarket trade today, futures imply a -87.32 point decline, which would be enough to open back below the 200-hour moving average—a shift that could hand short-term control back to sellers.
On the downside, the next key target sits at the 38.2% retracement of the rally from the June 23 low, at 20864.09
