US Stock Indices Show Signs of Recovery After Recent Declines

The S&P 500 and Nasdaq indices in the United States are experiencing a rebound after testing key support levels during a recent decline. Following four consecutive days of losses, buyers have emerged, pushing the indices higher. Both indices are currently trading around their 100- and 200-hour moving averages, which will be crucial in determining whether buyers can regain control of the market.

Despite a challenging economic backdrop, including persistent inflation pressures highlighted by the latest Consumer Price Index (CPI) data, the market is showing signs of resilience. The probability of the Federal Reserve tightening monetary policy has risen to approximately 90%. Typically, such inflation expectations would pose challenges for stock performance, yet the recent buying activity suggests that sellers may be losing momentum as short positions are covered and dip buyers re-enter the market.

For the S&P 500, the index is testing its 100-hour moving average at 7,677.32 and the 200-hour moving average at 7,699.49. A sustained move above these levels could shift focus toward higher targets, including the previous high of 7,816.70. Conversely, if the index fails to maintain these levels, it may face renewed selling pressure. Meanwhile, the Nasdaq has surpassed its 100-hour and 200-hour moving averages, giving buyers a short-term advantage, but it must hold above these levels to continue its upward trajectory. Key support for the Nasdaq is located between 25,910 and 25,963, which will be critical for maintaining bullish momentum.

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Source: KLEA News