NASDAQ index traded above and below its 200 hour moving average

Key Takeaways:

• The S&P and NASDAQ both dipped around -0.45% to -0.48%, closing near intraday lows
• The S&P index currently trades between its 100-hour and 200-hour moving averages
• The NASDAQ index hovered around its 200-hour moving average but is still below its 100-hour line
• A deeper move below these moving averages could target 38.2% and 50% retracement levels
• Market participants await Fed Chair Powell’s speech, expected to heighten volatility

Introduction

Today, the S&P and NASDAQ indices finished with mild losses of around -0.45% to -0.48%, remaining near their session lows. Investors showed caution, mindful of a potentially volatile market as Federal Reserve Chair Jerome Powell is scheduled to speak tomorrow.

S&P Index Assessment

The S&P index ended at about 6367.48, a drop of -20.2 points. On its hourly chart, the index is caught between its 100-hour and 200-hour moving averages. During the session, the S&P price briefly moved above its 100-hour moving average near 6385.78, though it failed to maintain upward momentum. By contrast, it bounced off its 200-hour moving average at the lows, preserving some near-term technical support. Should the index move decisively below the 200-hour average, traders may next look to the 38.2% retracement level at 6275.14 from the June 23 low as a bearish target.

NASDAQ Index Assessment

The NASDAQ index closed down -102 points, settling around 21071.50. The index fluctuated above and below its 200-hour moving average around 21150.40 but remains under its 100-hour moving average, currently at 21332.46. This positioning strengthens a bearish inclination, with further downside potentially testing the 38.2% retracement at 20864.09 and the 50% level at 20571.83 if selling pressure intensifies.

Cautious Sentiment Ahead of the Fed

A major factor fueling the market’s uncertainty is the impending speech by Federal Reserve Chair Powell. His remarks, scheduled for tomorrow at 10 AM, frequently shape investor attitudes and can trigger abrupt moves in both directions. Against this backdrop, traders have reduced risk exposures, waiting for more clarity on central bank policy and economic projections.

Conclusion

As the S&P and NASDAQ continue testing key technical levels, many on Wall Street believe tomorrow’s comments from the Federal Reserve Chair could redefine the market’s short-term trajectory. Whether the indexes break below critical supports or gain fresh momentum, Powell’s speech is likely to provide direction for the next wave of trading.