US equities sink, technical support levels eyed for bounce

The S&P 500, Nasdaq Composite and Nasdaq 100 face technical pressure. Key support levels might offer a lifeline, but buyers must show they can defend them.

Major US stock benchmarks are trading near session lows. If compared to ships, these indices are taking on water.

Broken moving averages have shifted the technical bias toward sellers. However, support targets lie ahead that could help steady the ships. The key question is whether buyers can use those levels to spark a recovery or if sellers will puncture the hull further.

S&P 500: A key support zone comes into view

• The S&P 500 has dropped below its 100-hour moving average at 7754 and its 200-hour moving average at 7714. These breaches hand more control to sellers and convert the moving averages into resistance on any bounce.

The next major downside focus is the rising 100-day moving average at 7603, which lies within a swing area from 7573 to 7617.

This combination makes the zone critical for buyers. Holding it could provide a platform for a rebound. A break below 7573, sustained below, would open the door to additional selling momentum.

For now, support is approaching. Buyers still need to appear.

Nasdaq Composite: The broken 100-day moving average defines risk

• The Nasdaq Composite tested its 200-hour moving average yesterday but fell sharply at today's open and breached its 100-day moving average at 26265.87.

That 100-day moving average now becomes a nearby risk-defining level. Staying below keeps the technical advantage with sellers. Moving back above and holding would ease some of the immediate downward pressure.

Without such a recovery, next downside targets include the September low at 25831.74, followed by the 38.2% retracement at 25036.33 and the rising 200-day moving average at 24980.37.

The retracement and the 200-day moving average form another important support zone. But buyers' first task is to reclaim the broken 100-day moving average. Until then, sellers maintain control.

Nasdaq 100: Buyers get a chance against a swing area

• The Nasdaq 100 gapped below its 100-day moving average at 29589.57 at the open and extended to a session low of 28962.36, bringing it within about nine points of the upper boundary of a swing area between 28822 and 28953.

This is where buyers have an opportunity to make a stand.

If the index can hold that swing area, a recovery toward the broken 100-day moving average becomes possible. Moving back above 29589.57—and staying above—would give buyers more control from a technical perspective.

Conversely, a break below 28822 would weaken that recovery scenario and expose the 38.2% retracement of the rally from the 2026 low at 28108.

The distinction matters: holding support can start a bounce. Reclaiming the broken moving average would strengthen the case that buyers are taking back control.

Support could steady the ships. The bias remains bearish.

The broader indices are sinking, but each has identifiable support ahead that could help slow the selling.

Support, however, is a place to watch for a response. It is not a guarantee the decline is over. Buyers need to hold those levels and then reclaim the technical levels broken on the way down.

Until that happens, the bias remains more bearish.