S&P 500, Nasdaq to Test 200-Day MA; Russell 2000 Breaks Below it: What Lies Ahead?
2023.09.27 03:30
Yesterday was a slam dunk day for the bears as whatever support, such as the retention of 4,325 in the , was sliced apart. We are now looking at measured move targets for the (), S&P 500, and , and tests of their respective 200-day MAs.
The S&P 500 is on course to reach its measured move target, with a good chance for a follow-through to its 200-day MA. Technicals are net negative, but the index is still outperforming peer indexes.
SPX-Daily Chart
The Russell 2000 (IWM) will reach its measured move target having already pushed below its 200-day MA. Yesterday also marked confirmed distribution to go with an ugly technical picture. If we do see a bounce, I would expect it to stall out at its 200-day MA.
IWM-Daily Chart
The Nasdaq is furthest from its measured move target and its 200-day MA. If the S&P 500 tests its measured move target, with the Russell 2000 likely to have done so by the time you read this, then the Nasdaq should do likewise.
COMPQ-Daily Chart
On daily time frames (at least on a six-month lookback) there isn’t a whole lot of support for this decline to lean on, particularly for the Russell 2000. The S&P 500 and Nasdaq have their 200-day MAs, but should these fail, then we will need to look again at weekly charts for targets.
