US stocks are moving back toward session lows as sellers regain control late in the day. The S&P 500 has traded to a new intraday low of 7360.38 and is currently down -44.2 points, or -0.60%, near 7364.
The NASDAQ is under even more pressure, falling -296 points, or -1.14%, to 25,925 after reaching a session low of 25,905. From a technical perspective, the hourly chart is showing a more bearish tone developing. Last Thursday’s rally pushed the price higher toward the upper boundary of a rising channel trendline, but buyers could not extend above that resistance level.
On Friday, the index rotated lower and closed just beneath the lower boundary of that channel — an early warning sign that upside momentum was fading. In trading today, attempts to rebound stalled against the underside of that broken trendline, turning prior support into new resistance and helping to fuel another leg lower.
So what comes next? The next key downside target for the NASDAQ comes in at the 38.2% retracement level at 25,749.03. That level is also supported by prior swing levels going back in time, highlighted by the red-numbered circles on the chart. In addition, the rising 100-hour moving average is converging toward that area and currently comes in at 25,684, adding another important technical layer for traders to monitor.
Meanwhile, crude oil remains sharply bid. The price extended to a new high of $105.32, moving closer to the next major resistance target near the downward-sloping trendline at $105.85. Although there is still room for the rally to extend toward that level, the move is becoming increasingly stretched after the sharp recent gains.
