NASDAQ LEADS TODAY'S RETREAT -- LAST WEEK'S LOWS ARE BEING RETESTED -- SO ARE 50-DAY AVERAGES
MAJOR STOCK INDEXES RETEST LAST WEEK'S LOW... Stocks are under pressure and are retesting lows formed late last week. And are putting 50-day moving averages in jeopardy on daily charts. The tech-driven Nasdaq is leading today's retreat. The hourly bars in Chart 1 show the Invesco QQQ Trust Nasdaq 100 gapping lower today and retesting last Friday's intra-day low at 266. The QQQ failed this week's attempt to clear initial chart resistance at 282. A close below last Friday's low would signal more selling ahead. The QQQ is trading below its 50-day average.
The hourly bars in Chart 2 show the S&P 500 also gapping lower today after failing yesterday to clear initial resistance at 3425. The SPX is also threatening chart support near 3310 and its 50-day moving average.
The hourly bars in Chart 3 show the Dow Industrials also on the defensive. The Dow is also back below initial chart resistance at 28,200. And is threatening last week's low and its 50-day moving average. The red volume bars along the bottom of the three charts show heavier selling taking place during price declines. That's not an encouraging sign.
