US indices recorded another day of losses yesterday, but less than the previous two days when all major Wall Street benchmarks fell more than 1%. Tech stocks were once again the biggest losers – the Nasdaq 100 (US100) fell 0.51%.
Looking at the US100 on the daily chart, while the index has shown some weakness over the past few days, falling 5% from its high of December 1st, the downside momentum has eased after the price touched the support zone above 11,500 points . The move down was halted yesterday at the SMA50 (green line) and today’s moving average test failed to result in a break either. The lower shadows of the last two candles indicate that there is strong buying interest in the 11,500 area. However, it cannot be ruled out that we will have to wait until next week’s Fed decision for the index to see any major movement in one direction or the other. Should the bears regain control and push the index below the 11,500 zone, the next support to consider would be at the lower border of the overbalance structure (11,075 points). Conversely, should the index recover from current levels, the 12,100 resistance zone marked by recent local highs would be a level to watch out for.
Source: xStation 5
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