NASDAQ index tests a key cluster of support
The NASDAQ index is the worst performer of the major indices with a decline of now over 1%. The move to the downside has now taken the price to a key support area.
That support area is defined by the:
- 100 hour moving average at 13379.32 (see blue line on the chart above), and
- A key swing area between 13364.74 and 13382.98 (see red numbered circles and yellow area on the chart above)
This area will be a key barometer for traders in the short-term. Hold support (dip buyers enter here) and a rotation back toward the 200-hour moving average (green line on the chart above) currently at 13473.82 would be eyed on a bounce.
Conversely, a break below the cluster of support and I would expect the low risk dip buyers to exit, and the door to also open door for further downside momentum from increased selling.
Not helping the stocks are interest rates with the 10-year yield now up 6.2 basis points at 4.906% (the highest level since 2007). The 30-year yield is now also back above the 5.00% level at 5.008%, up 5.7 basis points on the day.