The major US stock indices are trading mixed in early action, reflecting a market still searching for clear direction. The Dow Jones Industrial Average is leading with a modest gain of 0.28%, while the S&P 500 is essentially flat, up just 0.05%. By contrast, the NASDAQ Composite is under more pressure, down 0.32% on the session.
The weakness in the NASDAQ took the index down to an intraday low of 22,285.44, a level that aligned almost perfectly with its 100-hour moving average at 22,284.89. That moving average has been a key battleground for traders: yesterday the index dipped below it twice, only to rebound quickly both times.
This makes today’s test all the more important. A decisive break below the 100-hour moving average, combined with momentum and follow-through selling, would shift the bias more bearish. In that scenario, traders would likely set their sights on the next key technical target — the 38.2% retracement of the August 20 low to last week’s high, which comes in at 22,075.05.
For now, the NASDAQ remains at a technical crossroads. Holding above the 100-hour moving average keeps the short-term bullish bias intact, while a break below could mark the beginning of a deeper corrective phase.
