The S&P index turns negative
The S&P index gave up its gains and traded in negative territory. At the highs of the session, the price change was up 18.92 points. The low price has just reached -14.78 points over one day.
At session lows, price tested a swing level dating back to March and last week near 5056.92. Support buyers moved closer to this level during the first test. If the level manages to maintain support, a return to the upside would be expected.
On the higher side, the falling 100 hour moving average (blue line in the chart above) is near the 50% midpoint of the downward corrective move near 5108. Going forward, there will be a need to return above this moving average and this median level. to give more confidence to buyers.
On the downside, a break below the swing level would cause traders to target the 50-hour moving average (black moving average line) at 5035.12. Breaking below increases the bearish bias with a retest of last Friday’s price low as the next target.
The NASDAQ index maintains gains of around 29 points or 0.18%. The Russell 2000 is down -12.46 points or -0.62%. Yields are higher today, which is holding back the small-cap sector.
- 2-year yield 4.941%, +3.6 basis points
- 5-year yield 4.672%, +5.1 basis points
- 10 years 4.658%, +6.0 basis points
- 30 years 4.788%, +6.5 basis points.
At 1 p.m. ET, the U.S. Treasury will auction five-year notes. Yesterday, the Treasury auctioned off a record amount of two-year notes with demand (not stellar but good).
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