200 bar MAs in play
The major US stock indices are toying with a shift in the bias to the downside.
Starting with the S&P, looking at the daily charta above, the price dipped below its 200 day MA at 2750.83 today on the way to a low of 2742.03. We are currently trading above that key MA at 2753.94. A close below would tilt a little of the bias to the downside for that index.
Drilling to the hourly chart of the same index (see chart below), the low today stalled right at the 200 hour MA (green line in the chart below) and bounced. The price moved above the 200 hour MA back on January 9th and took off away from that MA on the 14th. It has not traded below that MA since that day.
A move below both the 200 day MA at 2750.83 and then the rising 200 hour MA (currently at 2742.63) would tilt the bias in the S&P more to the dowside. Staying above, keeps the bulls more in control.
Switching to the Nasdaq index (see chart below), the price today moved back below its 200 day MA at 7479.98. We are still below that MA - trading at 7439 currently. That is a tilt back to the downside as long as the price can stay below.
Drilling to the hourly chart below, the price moved below the 100 hour MA (blue line) today, but stalled the low ahead of the 200 hour MA (green line in the chart below) The Nasdaq moved above its 200 hour MA back on January 8th, and has stayed above that MA since that day. The fall below the 100 hour MA is more bearish, as is the fall below the 200 day MA, but if the price cannot get and stay below its 200 hour MA, the buyers/bulls still have an edge.
So with the down day today and the fall below the 100 hour MAs in the S&P and Nasdaq and the fall below the 200 day MA on the Nasdaq, the bias is tilting a little to the downside, but there is work to do for the sellers to take more control after the sharp run up since the end of December. Today or the day's ahead will help to complete the stories for each. Be aware.
