The Nasdaq index came under pressure last Thursday after spending much of the week battling its 200-hour moving average (green line on the chart below).
Throughout the end of June and into early July, buyers repeatedly pushed above that key technical level, but only by a modest margin
Buyers had their shot. They missed. Each breakout attempt quickly lost momentum, leaving the index unable to establish a foothold above the moving average.
Ahead of the long U.S. holiday weekend, sellers finally seized control. A break below the 100-hour moving average, then at 25,992.69, triggered a sharp selloff that extended to a low near 25,651 before bargain hunters helped lift prices into the close. Today’s session opened with renewed buying interest, pushing the index back above the 100-hour moving average (now near 25,992.67).