Nasdaq trades above and below the 200 hour MA and tests a gap area from August

The Nasdaq index is down -443 points or -2.5% at 17271. That has taken the price below its 200-hour moving average 17304.22, and is testing a gap going back to August 14 to August 15 at 17260.73. The low price today has reached 17267.58.

If the price were to move below those levels, the 30 and .2% retracement of the move up from the August low to the August high comes in at 17135.59. The price last traded at that level on August 14.

For the S&P index, it fell too of course, and is trading below its 100-hour moving average of 5575.24. The index is down -84.77 points or -1.5% at 5564.14 currently and is also testing a swing area near 5560.95. The low reached right near that area and is bouncing modestly. A break below would have traders looking towar the 200 hour MA at 5477.52 and would be a target on more selling.

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