Found sellers against its 50% and 100 hour moving average
The NASDAQ erased its earlier gains and moved modestly into the red. At the high, the index was up 1.55% or 203 points. After dipping briefly into the red, the index is now back up 58 points and volatile trading.
Technically, at the highs for the day, the pair tested the 50% retracement of the corrective move lower from the February 16 high. That level comes in at 13286.084. The high price for the day reached 13277.105. The pair also sniffed the following 100 hour moving average which currently stands at 13302.86.
The inability to extend above those key technical levels, maybe contributing to the rotation back to the downside.
The move lower has returned to retested the 38.2% retracement of the same move higher at 13076.27 AND the 50 hour moving average at 13069.465. The low for the day reached 13067.184 just below those levels.
So although there were sellers above against technical resistance, there have also (so far) been buyers below against technical support. At some point there will be a break. Traders are likely to go with the break.
Of course, the big event for the day is the 10 year note auction at 1 PM ET. At the moment the 10 year yield is up 1.5 basis points at 1.542%. The stock market has been very sensitive to the US interest rate environment. If the auction is a success, we should see equity prices move higher. If it is not, the corrective rally may be over.
PS. the S&P index and Dow Jones industrial average are fairing better (the rotation out of tech is back on today). The S&P index is currently up 0.43% or 16.42 points at 3891.90. The Dow Jones industrial average is up 306 points or 0.96% at 32139.35.