Nasdaq looks toward 200 hour MA support target

The major US stock indices are tumbling to new lows.

• Dow industrial average is down 580.31 points or -1.35% at 42344
• S&P index is down 80.43 point toward -1.37% at 5770.88
• NASDAQ index is down 396 points or -2.13% at 18177.64.

Technically, the NASDAQ index is moving toward its rising 200 hour moving average at 18115.01. The last time the price traded below its 200-hour moving average was back on September 11. Earlier on the day the 100-hour moving average and upward sloping trendline was broken near 18306.87 tilting the bias more to the downside..

The S&P index has also moved below its 100-hour moving average of 5801.77. Its 200-hour moving average is the next downside target at 5749.54. Earlier today the price gap below its 50 hour moving average which was a bearish tilt. Yesterday I posted a detailed look at the S&P titled “If stocks are so expensive, find a reason to sell”. You can read that post HERE.

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