Tests 50% midpoint for the year
The Nasdaq opened with declines that were relatively better than the S&P and Dow, but has since reversed that trend and is leading the way to the downside. Amazon which opened higher is now down -3.77%. Apple is down -2.7%. Microsoft is lower by -4.56%. Facebook is down -5%. Netflix is even lower now after being higher earlier in the session (-1.7% now).
A snapshot of the indices is showing:
- NASDAQ index -314 points or -3.68% at 8245
- S&P index -84 points or -3% at 2738.53
- Dow industrial average -570 points or -2.41% at 23082
Technically for the NASDAQ index, the pair has moved below it 200 day moving average at 8407.60 and 50 day moving average at 8319.336. Yesterday and on Friday, the index pushed up against its 100 day moving average (blue line) at 8675.79 currently and found sellers. That hold, gave traders some cause for pause that the high was in place. The breaks below moving averages enhance that feeling. The 50 day moving average is now close risk technically for the shorts.
On the downside, the index has stalled just ahead of its 50% midpoint of the 2020 trading range. That level comes in at 8234.896. If the price is able to extend below that level today (and stay below), it would be another step in the downward/bearish direction.
NOTE: The high price from April 9 stalled just ahead of that 50% level. On April 14 the price gapped above the level and has stayed above since. Hence the levels increased importance.
