The broader U.S. stock indices are breaking lower, slipping beneath their 50-day moving averages — a technical development not seen since early May following the April selloff. The move marks a shift in momentum and puts sellers back in control of the near-term bias.
For the NASDAQ index, the 50-day moving average sits at 22,657.35, with today’s low reaching 22,563.42. A sustained move back above that level would be needed to ease selling pressure and offer buyers some hope. Until then, sellers remain in control, and further corrective action is likely.
The next downside target comes near 22,044.43, corresponding to the swing lows from late September and mid-October. Below that, the 100-day moving average, currently rising near 21,770.55, would become the next key support level to watch.
For the S&P 500, the index has also broken below its 50-day moving average, currently at 6,668.76 — the first such breach since early May. Remaining below that level would keep the focus on the September-to-October lows near 6,550.79, followed by the 100-day moving average at 6,487.71 as a deeper target.
The NASDAQ is on pace for its worst week since March 31, down 4.4%, while the S&P 500 is off 2.65%, also heading for its steepest weekly loss since late March. The technical damage is notable, and for now, buyers have their work cut out for them if they want to shift the tone back in their favor.
