Overview
The article discusses the current technical landscape of the broader US stock indices, particularly focusing on the NASDAQ and S&P 500. The prevailing sentiment in the market is characterized by "Uncertainty," primarily due to ongoing concerns regarding US tariffs and their potential implications.
Market Sentiment
Uncertainty surrounding the scope, timing, and impact of US tariffs has led to a cautious approach among investors, resulting in a de-risking trend. This has caused significant downward pressure on the major indices, with both the S&P 500 and NASDAQ experiencing notable declines.
Technical Analysis
From a technical standpoint, sellers are currently in control of the market. The NASDAQ encountered resistance at its 100-hour moving average, while the S&P 500 faced selling pressure at both its 100- and 200-hour moving averages. These resistance levels have held firm, leading to a downward price rotation and a clear rejection of key intraday resistance levels.
Future Outlook
The article outlines potential downside targets if the current momentum persists. The overarching theme of uncertainty continues to weigh heavily on market participants, affecting not only the indices but also countries and companies at large.
Key risk levels to watch include the 100- and 200-hour moving averages, with the 38.2% retracement of recent lows identified as a significant downside target.
Conclusion
In summary, the technical analysis indicates a negative bias in the market, driven by uncertainty regarding US tariffs. Investors are advised to monitor key technical levels as they navigate this volatile environment.