The Nasdaq opened lower, then rallied and briefly moved above the 100-day moving average at 16,876.83. Just above that is the 50% retracement of the move up from the May low to the July high. That level reached 16,946.92. Today’s high reached 16,920.63 between the two levels. Buyers have turned to sellers.
The price dropped from this level to the lowest level for the day at 16582.79. The next target is 16540.02. This represents 61.8% of the same upward move. This level is also the high of the swing area between 16442 and 16540 (see the green numbered circles on the chart above).
Therefore, the support and resistance levels are determined by the current price between support (up to 16442) and resistance (up to 16946.97).
For the S&P, it briefly tested/broken below its 100-day moving average at 5307. Today’s low was 5305.98 just below this level. The 50% is just above its 100-day moving average at 5311.62. The low survived the first break below these levels. The current price is trading at 5316. Watch this level today and in the future. If the support holds, we could see a bounce. If it breaks, it opens the door to more selling.
So, the 100-day and 50% retracement levels are present in the influence of the major indices. But from two different perspectives. For the Nasdaq, the levels represent upward resistance. For the S&P, the levels represent downward support.
be cerfull.