Nasdaq, S&P 500 Key Support Levels Under Threat as Semiconductors Undercut 200 DMA

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Nasdaq, S&P 500 Key Support Levels Under Threat as Semiconductors Undercut 200 DMA
US Small Cap 2000Ishares Russell 2000 ETFNASDAQ Composite
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Stocks Analysis by Declan Fallon covering: S&P 500, US Small Cap 2000, iShares Russell 2000 ETF, NASDAQ Composite. Read Declan Fallon's latest article on Investing.com

If a precedent was set by Friday's undercut of the 200-day MA in Semiconductors, then it could be a rough few weeks ahead for indexes.

The mid-line of Stochastics was undercut by Friday's close, suggesting this is just the start of a decline, rather than the end of one. The S&P 500 also undercut its 50-day MA on bearish technicals and higher volume distribution. Unlike other indexes, there is quite a bit of room to the next support level at 5,150 , plus, Stochastics are sill in bullish territory. The index is outperforming peer indexes, so if there is an index to attract buyers, then this should be it.

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