According to a technical analyst, both the S&P 500 and Nasdaq 100 are currently trading below their 200-day moving averages, which is a crucial signal used to determine long-term market trends.

The recent trading pattern suggests impending downward movement, with potential obstacles in the next quarter. This situation is being closely monitored by experts for any signs of further decline.

The fact that these indices have been consistently trading below the 200-day moving average and failed to surpass this level after retesting it since early March implies a shift towards a downtrend. This aligns with a fundamental principle of technical analysis where previous support turns into resistance as a new downtrend begins.

The prolonged trading below this pivotal level indicates a resistance barrier for stocks, potentially marking the commencement of a new downtrend characterized by lower highs and lows.

Despite occasional market rebounds like those in March 2023 and November 2023, when the indices briefly dipped below the 200-day moving average but promptly recovered, the extended duration under this level increases the likelihood of a sustained downtrend.

Katie Stockton, a prominent technical analyst, anticipates further stock market troubles and foresees a continuation of the correction from mid- to late April based on current market conditions. She also highlights the challenging prospects for the Nasdaq in the coming quarter.