The buyers and sellers in the broader S&P 500 and Nasdaq indices are sparring for control as another wall of worry begins to take shape. Concerns over higher interest rates, slower global growth, the implications of peace in the Middle East, a potential slowdown in capital spending, sector rotation, market transitions, and a pickup in IPO and debt financing activity have investors on edge.
Technically, both the S&P 500 and Nasdaq have fallen below their 100- and 200-hour moving averages, tilting the short-term bias in favor of the sellers.
- S&P 500: The decline has so far held above an important swing-area support target, giving buyers a level to defend.
- Nasdaq: The index has dipped below its comparable target but continues to consolidate around that area, leaving the battle for control unresolved.
In the video above, I break down these key technical levels and outline what needs to happen for the sellers to tighten their grip on the market, or for the buyers to throw the next punch and regain momentum.
This article was written by Greg Michalowski at investinglive.com.
