Broader U.S. stock indexes have been on an upward trend in 2024, but this upward trend has seen some “stall” of late.
Today’s higher-than-expected CPI data pushed the broader S&P and NASDAQ indexes lower and, in doing so, took their prices back below the 200 hourly moving averages. This is a significant change in the short-term bias that, if it persists, would give sellers additional confidence from a technical perspective.
That said, there is work to be done on the downside to give sellers even more confidence. This is not just another buying move lower (at least in the short term).
Specifically, breaking below the April lows is the next major step. If this can be done, traders could begin to consider a more substantial correction with the 38.2% retracements of each of these indices.
In this video I explain the change, risk, targets for the S&P and Nasdaq indices.
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