It was up around 0.4% in morning trading in Europe, before a gradual decline in recent hours. Tech stocks remain the main anchor, however, with Nasdaq futures up 0.4%. But Dow futures even became flat during the session. European stocks are not too affected, with the main indices maintaining slight gains. The DAX and CAC 40 are both up 0.3% while the UK FTSE is up 0.5%.
After six days of losses, Wall Street followed up with consecutive gains this week. This is a modest rebound for the S&P 500, just before a test of its 100-day moving average (red line):
Daily chart of the S&P 500 index
The question now is: is the sale already over? Or is this just a slight bounce before sellers continue the recent retracement?
The latest rebound, while encouraging, still sees short-term price action remaining below its two key hourly moving averages:
S&P 500 Index Hourly Chart
And that means the short-term bias remains even more bearish. At least until buyers attempt to break above the 100 (red line) or 200 hour (blue line) moving averages as shown above.
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