US stocks are facing declines, with the Dow Jones turning negative after earlier gains, while the S&P 500 has fallen by 1.0%. The Nasdaq is experiencing the largest drop, down nearly 2%.

Currently, the Dow Jones is down by 88.74 points to 43,344.38, the S&P 500 has decreased by 58.7 points to 5,897.31, and the Nasdaq has lost 353.64 points, now at 18,721.60.

A key support level for the Nasdaq at 18,832.20 has been breached, indicating a shift in market dynamics.

Downside targets for the Nasdaq include 18,595.36 from November 15 and the 200-day moving average at 18,346.78. A drop below 18,595.36 could lead to further declines.

This downturn reflects a shift in sentiment, driven by factors that have placed pressure on equity markets. A break below a crucial level suggests that sellers are gaining control, and attention now turns to whether further support levels will hold.

The inability of the Nasdaq to maintain its footing above 18,832.20 has caught the market’s attention. When a market moves below a well-established level, it often signals a change in trader behaviour. Some may take this as confirmation that momentum is weakening, increasing the risk of additional selling.

For now, two levels stand out. The first is 18,595.36, established in mid-November. It previously provided a foundation for a rebound, and the question now is whether it can do so again. The second is the 200-day moving average at 18,346.78. This long-term trend marker frequently acts as a zone where larger market participants reassess their positions.

If the first level fails to hold, focus shifts to the broader trend. The 200-day moving average is not simply another number on a chart; traders watch it closely when determining longer-term positioning. Should prices fall below this mark, it would reinforce concerns that momentum has shifted further towards the downside.

Elsewhere, the S&P 500 has also lost ground. A 1.0% decline erases prior gains, showing that selling pressure is not confined to one part of the market. This suggests caution across the board, not just in technology-driven names.

Meanwhile, the Dow has turned lower. Although its pullback has been less pronounced than the others, it reflects a broad downturn rather than isolated weakness in one sector. Movements in this index often mirror changes in confidence among companies with more stable earnings.

As we watch how the next levels hold up, sentiment will continue to drive short-term moves. Breaks of widely-followed support levels can act as triggers for additional selling, particularly if downside momentum builds. On the other hand, if buyers step in at these points, it would indicate that not everyone is willing to bet on further declines just yet.

For now, price action points to uncertainty. Each level broken adds weight to the idea that sellers remain in control, while any bounce at support invites a closer look at whether conditions are stabilising.