The tech-heavy Nasdaq could plunge another 12% from current levels as a key support level is tested, says Morgan Stanley's investment chief
A trader works on the floor at the New York Stock Exchange in New York City, New York, U.S., March 3, 2020.As investors continue to grapple with a rise in COVID-19 cases and the uncertainty of more fiscal stimulus from Congress, the technical picture of the stock market"has deteriorated," Morgan Stanley said in a note on Monday.the next level of support investors should watch is the 200-day moving average, according to the note.
A continued market sell-off to the 200-day moving average would represent downside potential of 5% and 12% in the S&P 500 and Nasdaq 100, respectively, based off of Monday's closing prices.Visit Business Insider's homepage for more storiesThe stock market's current correction may have more room to go from a technical perspective as investors turn their attention to rising COVID-19 daily cases and uncertainty from Congress on another fiscal stimulus package.
That's according to Morgan Stanley's Mike Wilson, who highlighted in a note on Monday that the"technical picture has deteriorated, especially for the Nasdaq 100," according to the note.after enjoying a steady, albeit overextended, uptrend. Now, the market's next level of key support is the 200-day moving average, which represents downside potential of 5% and 12% for the S&P 500 and Nasdaq 100 indices, respectively, based on Monday's closing prices.
While Morgan Stanley still sticks by its view that stocks are in the early days of a new bull market, the tech-heavy index remains especially vulnerable to continue its correction to the 200-day moving average.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
New York Nico Is Helping Save New York City, One Instagram Post at a Time'A record store isn't going to sell enough records to make enough money to cover their $17,000 rent in East Village.' Nicolas Heller AKA New York Nico NuevaYorkNico is using his platform to help save New York City's small businesses.
Read more »
New York Nico Is Helping Save New York City, One Instagram Post at a Time'A record store isn't going to sell enough records to make enough money to cover their $17,000 rent in East Village.' Nicolas Heller AKA New York Nico NuevaYorkNico is using his platform to help save New York City's small businesses.
Read more »
New body camera policy in New York aims for more transparency after death of Daniel PrudeLocal police will no longer determine when to release footage in cases where officers kill unarmed civilians, New York's attorney general said.
Read more »
New York City police officer spied on fellow Tibetans for China, prosecutors chargeA New York City police officer was arrested on a federal criminal complaint charging him with acting as an illegal agent of China.
Read more »
New York Attorney General Leticia James announces body camera reforms in response to Daniel Prude's deathNEW: New York Attorney General Leticia James announced reforms for releasing police-worn body camera footage in response to the handling of the death of Daniel Prude.
Read more »
New York Attorney General Gives Update in Daniel Prude Case, Live StreamCharges have been announced in the Daniel Prude case.
Read more »