Draw back within the NASDAQ index continues. Index is now down near 1%

The NASDAQ index is buying and selling decrease by almost 1% in the present day, pulling again from the all-time excessive reached final Wednesday. The decline has introduced the index nearer to a key technical stage — the rising 100-hour transferring common, now at 21,325.57.

This transferring common has performed an necessary position just lately. The index final fell beneath it on July 31, however rapidly recovered, climbing again above on August 6 and utilizing it as a springboard for the run to the document excessive at 21,803.75.

Ought to the index slip beneath the 100-hour transferring common as soon as once more, merchants will shift focus to the 200-hour transferring common at 21,105.00. That stage additionally has historical past: on August 1, the index briefly dipped beneath the 200-hour common earlier than snapping again larger.

For merchants, in the present day’s value motion will assist decide whether or not the present transfer is solely a pullback inside an uptrend or the beginning of a deeper correction. Getting and staying beneath the transferring averages can be a destructive and suggests extra draw back potential for the index.

This text was written by Emma Wang at investinglive.com.