Nasdaq 100 Index faces a critical technical test, levels to watch

theflyonthewall.com

The Nasdaq 100 index is at a critical technical juncture today, trading close to the intersection of the 10-day moving average at 2667.77, and the 200-day moving average at 2660.97. Currently the index is above both, but it would not take a great deal of movement to push it below both. That would be a technical negative. Additionally any prolonged downtrend in the index now would likely see a bearish crossing of the 10-day and 200-day moving averages. Such crossings are confirmations of longer-term momentum becoming negative. Equally, a reaction above the moving averages would be bullish, but we would need to see price levels in the index handily clear both on the upside. Price clinging close to the averages over time would not be bullish. Resistance is at 2679.81. Support is at the 10-day moving average at 2667.77.

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