SP500 Pulled Back As 30-Year Yields Tested The 5.60% Level
SP500 is losing some ground as traders focus on rising Treasury yields and react to economic reports.
The yield of 10-year Treasuries tested the 5.29% level, while the yield of 30-year Treasuries made an attempt to settle above 5.60% as bond market sell-off continued. Interestingly, the continuation of the sell-off in Treasury markets did not put significant pressure on SP500 in today’s trading session.
JOLTs Job Openings declined from 7.335 million in July to 7.079 million in August, compared to anlayst ofrecast of 7.23 million. FedWatch Tool indicates that the probability of a rate hike at the next meeting in October declined to 68.1% as traders reacted to job market data.
Traders also had a chance to take a look at the CB Consumer Confidence report. The report showed that Consumer Confidence decreased from 88.6 in August to 81.9 in September, while analysts expected that it would increase to 89.2. CB Consumer Confidence index is at its lowest level in 12 years.
Case-Shiller Home Price index report indicated that home prices increased by +2.5% year-over-year in July, compared to analyst forecast of 2.2%.
Traders also focused on the pullback in the oil markets, which served as a positive catalyst for SP500. WTI oil declined below the $90.00 level as Saudi Arabia resumed oil loadings at Yanbu port.
Utilities and tech stocks were among the best performers in the SP500 index today. Energy stocks found themselves under pressure as traders reacted to the pullback in the oil markets.
The nearest resistance level for SP500 is located in the 7720 – 7730 range. In case SP500 manages to settle above the 7730 level, it will head towards the next resistance at 7815 – 7825. On the support side, a move below the 7660 level will open the way to the test of the support at 7615 – 7625.
NASDAQ Moved Away From Session Lows As Oil Markets Pulled Back
NASDAQ rebounded from session lows as traders reacted to recent developments in the oil markets. I’d note that the trading session was calm, and traders were not ready for big moves.
If NASDAQ manages to settle above the 30,500 level, it will head towards the resistance level, which is located in the 30,750 – 30,800 range. On the support side, a successful test of the support at 30,200 – 30,250 will push NASDAQ towards the next support level at 29,850 – 29,900.
Dow Jones Price Forecast
Every new Dow Jones analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Dow Jones forecastsDow Jones Tested Support At 51,100 – 51,200
Dow Jones is losing ground as most stocks in the index moved lower. Apple, which was down by -2.3%, was the worst performer in the Dow Jones index today.
Currently, Dow Jones is trying to settle below the support level at 51,100 – 51,200. In case this attempt is successful, Dow Jones will move towards the next support at 50,300 – 50,400. RSI is in the moderate territory, so there is plenty of room to gain momentum in case the right catalysts emerge.
For a look at all of today’s economic events, check out our economic calendar.
