The major US stock indices are rebounding after Friday's shellacking. The rebound however is just part of the decline.
- Dow industrial average up 473 points or 1.04% at 45938. On Friday the index fell -878.82 points
- S&P index up 74 points or 1.13% at 6627.38. On Friday the index fell 182.60 points
- NASDAQ index up 318 points or 1.44% at 22524.92. On Friday the index fell -820.20 points. The decline was its worst one-day fall since April. 471 points or 1.03% at 45952.12
Looking at the S&P index, it's gapped to the upside and that took the price back above its 200 hour moving average at 6620.59. If that level can continue to hold support, that would be a net -positive from a technical perspective. Note that the low price on Friday tested the 38.2% retracement of the trend move up from the August low.
For the NASDAQ index, Friday’s decline pushed the price below both its 200-hour moving average at 22,373.85 and the 38.2% retracement of the rally from the August 20 low at 22,275.37 — signaling a shift in short-term momentum. In today’s trade, the index has rebounded and is now consolidating between the 100-hour moving average at 22,695 and the 200-hour moving average at 22,373. The next decisive move above or below these two key levels will determine whether the near-term bias turns bullish or bearish.
