The Dow Jones Industrial Average has fallen by 750 points, or 1.54%. The S&P 500 is down by 54 points, or 0.78%, while the NASDAQ index is the least affected, with a decline of 112.5 points, or 0.49%. Concerns over escalating oil prices are starting to take a toll on stock prices. Crude oil has surged to $79.45, up $3.36, or 4.39%, driven by increased attacks from Iran on Bahrain and Dubai.
Additionally, yields are rising, with the 10-year yield up six basis points at 4.14%. This trend raises concerns domestically, particularly as we approach the critical spring selling season for real estate.
Technical Analysis: NASDAQ Struggles Below Moving Average
The NASDAQ index has dipped below its 100-hour moving average at 22,725.53. Remaining below this moving average keeps sellers in control, with traders focusing on potential swing areas near 22,256 and 22,461. If prices drop further, the 38.2% retracement level at 21,949 could become another target for sellers, potentially increasing downward momentum.
On the upside, reclaiming the 100-hour moving average is essential for restoring buyer confidence. Furthermore, breaking above the 200-hour moving average, currently at 23,029, will be crucial, especially after last week's high stalled near this level, underscoring its significance moving forward.
