Breaking News: Stock Market Plunges as S&P 500 and Nasdaq Take a Hit
In a surprising turn of events, the S&P 500 and Nasdaq experienced a significant drop yesterday, causing concern among investors. The S&P 500 struggled to maintain its former support turned resistance, finishing the day on its 50-day MA. To regain bullish momentum, a spike low followed by an end-of-day finish back at the 50-day MA is crucial.
Today, investors should watch for an intraday move to test the May swing high of 5,342, which could present a buying opportunity for aggressive traders. The Nasdaq also faced challenges, slicing through its 50-day MA and triggering sell signals in On-Balance-Volume, ADX, and MACD indicators. However, intermediate stochastics are not yet on a sell signal, leaving room for a potential price recovery.
The tech sector, represented by the Semiconductor Index, is caught between a surge and broader market weakness. Although technicals remain net bullish with the 20-day MA approaching $210 support, a test of this level may be imminent. Meanwhile, the Dow Jones Industrial Average struggled, losing key support levels and showing signs of further downside potential.
Overall, the market’s performance suggests more selling pressure could be ahead, but investors should monitor premarket movements for potential signals. A bullish harami or harami cross pattern could indicate a reversal, especially in the Semiconductor, Nasdaq, and S&P 500 indexes. Stay tuned for more updates on the evolving market conditions.