Technical Analysis


Nasdaq below 200 hour MA, tests 100 hour MA

The  NASDAQ  index is trading down -245 points or -2.05% at 11840. That has now taken the price below its 200 hour moving average at 11889.18. It is approaching the 100 hour MA at 11827.13. A move below that MA would tilt the bias firmly n the direction of the sellers.

Also of interest on the hourly chart, is the corrective move higher could not get to the 38.2% retracement of the last leg down. That level comes in at 12415.17. The high corrective price could only reach 12320.12. So the correction was well short of a normal plain vanilla variety. That is not indicative of a strong bid.

Taking a look at two of the major bellweather stocks Apple and Microsoft on the same hourly chart.

Looking at Apple, it has now fallen below both its 200 and 100 hour MAs. Bearish. It’s correction off the low barely reached the 38.2% before rotating back to the downside.

Apple

Apple is now below the 200 and 100 hour MAs

For Microsoft, it is below the 200 hour MA but still above the lower 100 hour MA at $266.28. Like the Nasdaq index, it gets closer to tilting the bias fully in the bearish direction on a break of that MA level.

MSFT

Microsoft is below its 200 hour MA but just above 100H MA



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