The major US stock indices are trading lower and reversed earlier gains after the better-than-expected data in the US dashed hopes for a more dovish Fed (or less hawkish Fed).
The move back to the downside has reversed a potential break to the upside above key technical targets for the S&P index. More specifically, the price moved above its 100 day moving average at 3899.16. It also ticked briefly above its 50% midpoint of the move down from the August high at 3908.43. The failure makes the technical picture look not so hot. It shifted the bias away from the buyers and back into the sellers hands.
The high price today reached 3911.79, but has since reversed back lower and trades near the lows for the day at 3851 down 20 points at -0.52%.
Going forward it would take a move above the 50% and the 100 day moving average to increase the bullish bias on the daily chart.
On the downside, the next key target would be the broken 38.2% of the move down from the August high at 3810.05. Move below that level in the bearish bias increases.
Buyers had the shot. They looked above the upper key target levels, but were pushed back down with the help of the US data. Sellers have taken back short-term control as a result.
This article was written by Greg Michalowski at forexlive.com.