Nasdaq, Dow and S&P 500 Test Support as Yields Rise

Nasdaq 100

The Nasdaq 100 looks as if it is falling pretty quickly in the early part of trading on Monday, as traders are pricing in the idea of some type of AI slowdown. The 28,500 level underneath is significant support, and I do think that continues to matter. Interest rates are still very high, and we are getting ready to see the stochastic oscillator reach the oversold condition. It is worth noting that we’re at the bottom of a range that we have been in.

Dow Jones 30

The Dow Jones 30 did gap a little bit lower, then rallied and has since given those gains back. But with that, the market does look like it’s trying to consolidate, with the 52,000 level underneath offering obvious support. I think this is worth watching. If the market were to break down below there, then it would show a continuation of negativity. If we were to break above the 50-day EMA, currently sitting at the 52,733 level, then it opens up the possibility of continued bullish pressure.

S&P 500

The S&P 500 has gapped lower, and it finds itself opening near the 50-day EMA and the 7,600 level, an area that previously had been significant resistance and now has a lot of market memory attached to it. The question is, can we turn things around? It’ll be interesting to see. A lot of this will come down to the bond markets and where rates are going. But at this point, it looks like the 10-year yield in the United States is doing everything it can to reach the psychologically important 5% level.

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