Nasdaq and S&P500: Year-End Selling Hits Tech Stocks, US Indices Retreat

• Nasdaq fell 0.50% to 23474.35, with potential support at the 50-day moving average (23226.59) and short-term 50% level (23178.58)
• S&P 500 declined 0.35% to 6905.74, maintaining 'buy the dip' mode with the 50-day MA at 6795.70 as key support
• Dow Jones dropped 0.51% to 48461.93, forming a potential double-top pattern at 48886.86 and 48782.00

Market Summary: US Indices Retreat on Year-End Selling

US stock indices declined Monday as technology sector weakness and precious metals plunge drove year-end selling pressure. The Nasdaq Composite fell 118.75 points (-0.50%) to 23,474.35, forming a lower top at 23,665.15 that threatens the Santa Claus rally. The S&P 500 dropped 24.20 points (-0.35%) to 6,905.74, while the Dow Jones Industrial Average declined 249.04 points (-0.51%) to 48,461.93.

Technical Analysis:

• Nasdaq: New lower top at 23,665.15 signals bearish sentiment. Support cluster expected at 50-day moving average (23,226.59) and 50% retracement level (23,178.58). Bulls need to break above 23,698.93 to target record high of 24,019.99.

• S&P 500: Minor top formed at 6,945.77 with first downside target at 50% level (6,833.10) followed by 50-day MA (6,795.70). Daily uptrend remains intact in "buy the dip" mode.

• Dow Jones: Potential double-top formation at 48,886.86 and 48,782.00, though light volume prevents confirmation. Key support at swing bottom 47,849.48, with 50-day MA at 47,476.37.

Market Outlook:

Despite Monday's weakness, all three indices remain on track for solid monthly gains, with the Dow and S&P 500 heading for their eighth consecutive monthly gain. Trading volume expected to remain light through Wednesday's year-end close, with investors squaring positions ahead of 2025. Technology and materials sectors led declines, while bank stocks also retreated.