Comments from Israel PM Netanyahu are helping to reverse the trends in oil and stocks and ease some of the wall of worry. Netanyahu is making amends for the bombing of South Pars field yesterday. In retaliation, Iran targeted Qatar’s energy infrastructure—specifically the Ras Laffan Industrial City, which is one of the world’s largest liquefied natural gas (LNG) hubs and did extensive damage.
At the time the Trump administration acknowledged they knew of the attack but later in the day after the Qatar attack and damage, denied any knowledge of the attack. We know how these things go.
Looking at the 5 minute chart of crude oil, the prices rotating back down toward the low $90 area after trading as high as $100.48. The low price from yesterday reached $91.45. That is the next downside target. A move below that level would open the door toward the $90..
The S&P 500 and NASDAQ are both trading around key technical inflection points, with the focus squarely on their respective 200-day moving averages.
For the S&P 500, the index is currently back testing its 200-day moving average at 6619.15. The price is holding just above that level at 6627.01, up modestly by +2.36 points (+0.02%). Holding above this key average is critical—a sustained move below would tilt the bias more bearish, while staying above keeps the broader uptrend intact, at least for now.
For the NASDAQ, the story is a bit weaker. The index is up slightly by +10 points (+0.04%) at 22,163, but remains below its 200-day moving average at 22,238.06. A move back above that level would relieve downside pressure and give buyers more confidence, but until then, the sellers still have a technical edge.
Earlier in the session, the NASDAQ dipped to a low of 21,851.05, breaking below the November 21 low at 21,898.79. However, the market has since rebounded off those lows, helped in part by geopolitical headlines, including comments from Netanyahu, which sparked a modest recovery.
Bottom line:
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S&P holding above 200-day MA → neutral to slightly bullish bias
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NASDAQ below 200-day MA → still under pressure
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A reclaim of key averages is needed to shift momentum back to buyers
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