Nasdaq plummets, Breaks key support levels

US stocks are hitting new session lows, with the Dow turning negative after spending most of the day in positive territory, while the S&P 500 accelerates its decline, now down 1.0%. The Nasdaq is taking the hardest hit, leading the losses with a sharp drop of nearly 2%.

Market Snapshot:

• Dow Jones: -88.74 points (-0.20%) at 43,344.38
• S&P 500: -58.7 points (-0.99%) at 5,897.31
• Nasdaq: -353.64 points (-1.85%) at 18,721.60

Nasdaq Breaks Key Support, Sellers Gain Control

In an earlier post, I highlighted the 100-day moving average as resistance and support near 18,832.20. That support level has now been broken, shifting momentum further in favor of the sellers.

Key Downside Targets for Nasdaq:

• 18,595.36 – Swing low from November 15
• 18,346.78 – Rising 200-day moving average

If the Nasdaq extends below 18,595.36, the next major test will be the 200-day moving average at 18,346.78. A hold above this level could slow the selloff, while a break below would further accelerate downside momentum.

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