Wall Street shakeout fades as buyers retake control; S&P 500 and Nasdaq reclaim 100‑hour MAs, bulls refocus on record highs
A mid-session reversal lifted U.S. stocks back into the green, with traders leaning on short-term support to extend a resilient risk bid. The S&P 500 and Nasdaq recovered from early losses, reclaiming their 100-hour moving averages and putting late-October record highs back in view.
Equities reverse lower open as dip buyers step in
After a wobbly start, steady demand turned both benchmarks positive. At their troughs, the Nasdaq was down 141.84 points and the S&P 500 off 18.94 points, before a persistent bid flipped the tape higher. The S&P 500 was last up about 26 points (0.38%), while the Nasdaq gained roughly 51 points (0.22%).
The rebound follows a modest pullback that ended a five-session advance; even so, both indices have risen in six of the past seven trading days, underscoring durable momentum into year-end positioning.
Key technicals: 100-hour moving averages reclaimed
In a market driven by tactically minded flows, the push back above the 100-hour moving average in both indices is a key tell. That level now acts as a near-term bull-bear pivot—so long as price holds above it, traders are inclined to lean long and fade dips.
With that backdrop, attention turns to the late-October record highs. A clean hold above the reclaimed MAs keeps those peaks within reach, while a decisive break back below would warn of loss of momentum and invite a deeper retracement.
What it means for FX and macro sentiment
– The intraday equity recovery reflects firmer risk appetite, typically a headwind for defensive FX pairs and supportive for high-beta currencies.
– Volatility remains contained, suggesting systematic and options-related flows are stabilizing the tape rather than chasing breakouts.
– If Treasury yields stay orderly, equities’ tech-led bid tends to persist, softening the U.S. dollar at the margin. Conversely, a snap higher in yields could quickly cap the rally and revive haven demand.
Key Points
- Both the S&P 500 and Nasdaq reversed early declines to trade higher intraday.
- Nasdaq’s low: -141.84 pts; S&P 500’s low: -18.94 pts.
- Latest moves: S&P 500 +26 pts (0.38%); Nasdaq +51 pts (0.22%).
- Indices have risen in six of the last seven sessions, signaling persistent dip-buying.
- Reclaiming the 100-hour moving average is a bullish near-term signal; it’s now first support.
- Focus shifts to retesting the late-October record highs; a failure back below the 100-hour MA risks a deeper pullback.
Trading levels and risk management
– First support: 100-hour moving averages on both indices; watch for intraday retests and buyer response.
– Resistance: prior peaks from late October serve as initial topside targets.
– Risk: A sustained break below the 100-hour MA would likely trigger stops from short-term longs and shift momentum to sellers.
Market narrative
Today’s tone fits a broader pattern this quarter: shallow pullbacks, fast rotations, and systematic re-engagement on dip signals. With liquidity thinning into year end, index levels can move quickly around well-flagged technical markers. For multi-asset traders, the interplay between equities and rates remains critical—benign yields keep the path open for higher beta, while any surprise hawkish repricing would test the durability of the rally.
FAQ
Why did U.S. stocks rebound intraday?
Stocks bounced as buyers defended short-term support and reclaimed the 100-hour moving averages on the S&P 500 and Nasdaq, a tactical trigger that encouraged dip-buying and short covering.
What’s the significance of the 100-hour moving average?
It’s a widely watched intraday trend marker. Trading back above it often signals near-term momentum has shifted to the upside; holding it converts the level into first support for active traders.
Are record highs back in play?
Yes. With momentum intact and short-term support recaptured, the late-October record highs are the next logical topside targets, barring a sharp move higher in yields or a negative macro surprise.
How does this affect forex markets?
Improved equity risk appetite typically weighs on defensive FX (e.g., USD/JPY dips can be limited while high-beta currencies outperform). If yields stay steady, the U.S. dollar’s upside tends to be capped; a rate spike would likely reverse that dynamic.
What would invalidate the bullish setup?
A sustained break back below the 100-hour moving average on the major indices, especially on expanding volume, would signal fading momentum and open the door to a deeper retracement.
This article was produced by BPayNews for traders seeking concise, actionable market coverage.
