S&P 500 and Nasdaq benchmarks recover from earlier losses

The major US equity benchmarks have erased their earlier slide and turned higher. The move came after each index tested a key technical support level.

• S&P 500: The index lost 43.45 points at the session low and is now ahead by 7.59 points, a gain of 0.10%.
• Nasdaq Composite: A 229.90-point decline marked the session low; the index now sits 19.65 points higher, up 0.07%.
• Nasdaq 100: After falling 266.13 points at the low, it is now up roughly 50 points, or 0.17%.

All three indexes had been approaching a support target, and buyers got their opportunity to step in at those levels. So far, they have taken advantage of it.

• S&P 500: Buying emerged near the 100-hour moving average at 7667, halting the slide, and the benchmark moved back above the 200-hour moving average at 7681.68. Those two averages remain the short-term guide: holding above them keeps the buyers in charge, while losing them again would put the downside back into view.
• Nasdaq Composite: The 26706 low was protected by the bottom of the swing area near 26676. The index has since pushed back above the top of that zone around 26856 and is now near 26938. Buyers need to defend 26856 to demonstrate that the breakout has lasting power.
• Nasdaq 100: It fell to 30204.16, a level just above the 30195 swing mark, before rebounding. That 30195 mark stays the key line for the recovery.

The initial support test proved effective. The next challenge is for buyers to keep the advance going and add to it. Holding onto the reclaimed levels would support the case for a sustained recovery; losing them again would signal that the bounce is weakening.