S&P continues to flucuate above and below the 200 day MA

The S&P 500 dipped below its 200-day moving average yesterday for the first time since November 1, 2023. That key level currently sits at 5732.91. While the index traded below it intraday, it managed to close just above at 5738.52, avoiding a more definitive breakdown.

In early trading today, price action remains volatile around this key technical level. The index is currently trading below at 5730.49, down -7 points (-0.11%). A daily close below the 200-day moving average would strengthen the bearish outlook heading into the weekend.

On the downside, the next major support zone lies between 5669.67 and 5688.43 (yellow area and red-numbered circles on the chart). Further below, the 50% retracement of the rally from the August 2024 low stands at 5633.27, making it a key downside target if selling pressure accelerates.

If the price can rise and hold above the 200-day moving average, it would signal a potential shift in momentum. A further break above the 38.2% retracement level of the rally from the August low at 5754.58 would strengthen the bullish case, suggesting buyers are regaining control.

Meanwhile, the Nasdaq index is now lower on the day after trading up as much at 158.92 points at session highs. The price has traded above and below the 200 day MA (at 18399.30) over the last 4 trading days. The high price today has NOT reached that MA level keeping the sellers in control.

For the trading week, the NASDAQ is down -4.74%. The S&P is down -4.08%.

This article was written by Greg Michalowski at www.forexlive.com.