The 200-day moving averages are in play for both the S&P and the Nasdaq indices

Both the S&P 500 and NASDAQ indices have been highly reactive to their 200-day moving averages over the last few days, a key technical level for market direction.

The S&P 500 tested support near its 200-day MA at 5,728.26 yesterday, with buyers stepping in just above that level to prevent a deeper decline.

Meanwhile, the NASDAQ showed greater volatility, trading both above and below its 200-day MA (18,384.62) on Monday and Tuesday. However, in today’s session, the index has remained below this level, reinforcing seller control.

The 200-day MA remains a crucial dividing line between bullish and bearish sentiment for each of the indices. Holding above keeps buyers in play, while staying below suggests further downside risk.

In the video above, I break down key technical levels and potential shift points that could determine the next directional move for both the S&P and NASDAQ indices.

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