The Standard & Poor’s 500 was down 1.76% and the NASDAQ Composite fell 1.99% today.
But the worst damage was among the big tech names that had led the rally higher and that had bounced yesterday. Microsoft (MSFT) was down 2.80%. Amazon (AMZN) gave up 2.86%. Nvidia (NVDA) lost 3.17%. Apple (AAPL) dropped 3.26.
That led the NASDAQ 100, which is dominated by large cap tech stocks, to post a decline of 2.12%. The Technology Select Sector SPDR fell 2.26%.
The day’s volatility left the NASDAQ 100 at 11154. That’s just below the 20-day moving average at 11178 and well below the 200-day moving average at 11267.
Yesterday’s rally came as the indexes bounced off of their 50-day moving averages, which is at 11151 for the NASDAQ 100.
The question for tomorrow is whether than 50-day level will again support the market or if stocks, worried about a slowing job market, a weakening dollar, a chaotic U.S. Presidential election, and a resurgence of the coronavirus in Europe and the United States, will hold that level or punch through it to seek support at a lower level.
One technical level to watch below the 50-day moving average is the lower end of the Fibonacci range at 11127. A break below that technical level will be seen by technical analysts as a sign that selling is accelerating.
