SPX and NDX strength stalls at DMAs so far

The S&P 500 (SPX) and NASDAQ 100 (NDX) opened higher today following Nvidia's (NVDA) blowout earnings and guidance after yesterday’s close. However, today's opening upside gaps across the SPX, NDX, and NVDA have since gotten filled as selling pressure emerged at a tactical resistance zone marked by the broken daily moving averages (DMAs).

For the SPX, selling pressure appeared after testing a tactical resistance zone defined by the broken 13-, 26-, and 40-DMAs from 6734–6761, as well as an early October chart level at 6765 (see our first blog post this morning). Regaining this zone is key to confirming a successful test of important support at 6550, which remains an important risk management level. A failure to do so would keep 6550 exposed.

Chart 1: S&P 500: Daily candlestick chart with moving averages

The NDX exhibits a similar tactical pattern. Selling pressure arose after testing a resistance zone at the broken 13-, 26-, and 40-day DMAs from 25,087–25,265, and an early October chart level at 25,195. Reclaiming this resistance zone is necessary to confirm a successful test of key support at 24,200, which remains an important risk management level. A failure to do so would keep 24,200 exposed.

Chart 2: NASDAQ 100: Daily candlestick chart with moving averages