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S&P 500, Nasdaq to Test 200-Day MA; Russell 2000 Breaks Below it: What Lies Ahead?

Published 2023-09-27, 03:04 a/m
US500
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US2000
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IWM
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Yesterday was a slam dunk day for the bears as whatever support, such as the retention of 4,325 in the S&P 500, was sliced apart. We are now looking at measured move targets for the Russell 2000 (IWM), S&P 500, and Nasdaq, and tests of their respective 200-day MAs.

The S&P 500 is on course to reach its measured move target, with a good chance for a follow-through to its 200-day MA. Technicals are net negative, but the index is still outperforming peer indexes.

SPX-Daily Chart

The Russell 2000 (IWM) will reach its measured move target having already pushed below its 200-day MA. Yesterday also marked confirmed distribution to go with an ugly technical picture. If we do see a bounce, I would expect it to stall out at its 200-day MA. 

IWM-Daily Chart

The Nasdaq is furthest from its measured move target and its 200-day MA. If the S&P 500 tests its measured move target, with the Russell 2000 likely to have done so by the time you read this, then the Nasdaq should do likewise.

COMPQ-Daily Chart

On daily time frames (at least on a six-month lookback) there isn't a whole lot of support for this decline to lean on, particularly for the Russell 2000. The S&P 500 and Nasdaq have their 200-day MAs, but should these fail, then we will need to look again at weekly charts for targets.

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