The new short-term range is 24239.75 to 25494.75. Its pivot at 24867.25 was successfully tested earlier today. A failure to hold this 50% level could create enough downside momentum to challenge the 200-day moving average at 24510.75. This indicator was recently tested on February 17 at 24449.25 and on February 6 at 24239.75.
The 50-day MA at 25456.00 and the 200-day MA at 24510.75 have formed a mid-point at 24983.50. Traders should treat this mid-point as a directional pivot. The index is currently trading on the weak side of the pivot, indicating selling pressure.
Major Indexes Lower as Tech Leads the Decline
The major U.S. stock indexes are lower at the mid-session on Thursday with the Nasdaq Composite taking the biggest hit, falling 1.53% to 22,796.76. The S&P 500 dropped 0.87% to 6,885.05 while the Dow Jones Industrial Average held up better, slipping just 0.23% to 49,369.88.
February has been a choppy month with the major indexes swinging sharply between gains and losses as sentiment toward AI and technology stocks continued to waver. At one point during the month, investors pulled money out of high-flying AI stocks and into “Old Economy” blue chip companies. This drove the Nasdaq lower and the Dow into record highs over 50,000.
Tech and Communication Services Take the Biggest Hit
Tech and communication services took the biggest hits among the 11 S&P 500 sectors. Financials bucked the trend with a 0.8% gain. Energy stocks also climbed 0.9% after crude oil prices reversed their initial declines and moved more than 1% higher.
Banks and Consumer Stocks Find Buyers
Breaking down the sectors further, big banks were among the session’s bright spots, with Morgan Stanley, Goldman Sachs and Citigroup each rising nearly 1%. Consumer companies J.M. Smucker jumped 6% after beating third-quarter expectations and announcing a board deal with activist investor Elliott Investment Management. Celsius Holdings gained 7.3% on stronger than expected fourth-quarter revenue.