The broader US stock indices are down for the 3rd consecutive day. The NASDAQ index continues to lead on the downside.
Better data has pushed yields higher, with the 10-year now up 3.6 basis points at 4.185%. The 2-year yield is up 5.1 basis points at 3.649%. The 10 year yield reached 3.99% at session lows on September 17 – the day of the FOMC rate cut of 25 basis points. Cutting rates does not necessarily mean longer term rates will go lower.
Technically, the NASDAQ index dipped below its 100 hour moving average at 22239.64 shortly after the open (see blue line on the chart above). Since then, the price has rebounded, but still remains lower by -176 points or -0.78%. Topside resistance is at 22397. That was near the swing high going back to September 16 and the swing low from September 24 on the hourly chart above. It would take a move back above that level to give the buyers more control.
The S&P index also dipped below its 100-hour moving average at 6591.27, but has rebounded back above that level (blue line on the chart below). The rebound will have traders looking at the 6625.64 as topside resistance. Stay below is more bearish.
