Trades to a low of 2774.77
The S&P indexes trading to new session lows and tests its 200 day moving average at 2776.08. In fact, as I type, the price is breaking through that level to a new low of 2775.64.
Staying below the 200 day MA would increase the contracts bearish bias and will have traders looking toward the 38.2% retracement at the 2720.93 level. That is also close to the March swing low at 2722.27.
The high today reached 2792.03. That was just below its 100 day moving average at 2792.60.
Traders may tolerate a move back above the 200 day moving average, but a move above its 100 day moving average would likely lead to short covering on the failed breaks today (risk for shorts/sellers).
Sellers are in control. Can they push further below the key 100 and 200 day MAs is the next big hurdle.
PS the Nasdaq 100 day MA is at 7593.779, while the 200 day moving averages at 7527.091. The high for the NASDAQ reached 7581.11 - below the 100 day MA. The low just extended to 7525.035 and it too is now below its 200 day MA..
