After sharp declines last week, the broader U.S. stock indices are trading higher today, but the technical picture remains mixed beneath the surface. The NASDAQ indexcontinues to hold a short-term bearish bias, even with today’s rebound, while the S&P 500 has improved from the more negative posture seen at Friday’s close and is now trading in a more neutral-to-balanced technical environment.
In the video above, I break down the key technical levels driving both indices and explain why the S&P has seen a modest improvement in its outlook while the NASDAQ remains under greater technical pressure (sellers more in control). I also outline the levels traders should be watching that would either renew downside momentum in the S&P 500 or strengthen the bullish case for the NASDAQ by shifting its bias back to the upside.
As always, the battle around key moving averages and recent swing levels will be critical in determining which side gains the upper hand in the days ahead.
