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S&P 500; US Indexes Fundamental Daily Forecast – Investors Defending Weekly Low

By:
James Hyerczyk
Published: Feb 9, 2018, 15:09 UTC

If investors drive the 10-year Treasury yield through 2.885 percent then stocks could sell off violently later in the session.

U.S. Stock Indexes

The major U.S. equity indexes are rebounding shortly after the cash market opening on Friday after yesterday’s steep declines. Thursday’s sell-off actually put the Dow and the S&P 500 Index into 10% correction territory.

At 1436 GMT, the benchmark S&P 500 Index is trading 2608.24, up 27.24 or +1.06%. The blue chip Dow Jones Industrial Average is at 24109.57, up 249.11 or +1.04% and the tech-based NASDAQ Composite is 6863.27, up 86.11 or +1.27%.

The Dow is being driven higher by Boeing and Goldman Sachs. Information technology and financials are giving the S&P 500 and NASDAQ an early boost.

The markets could continue to trend higher if U.S. Treasury yields remain in a holding pattern. Early Friday, the 10-year Treasury was slightly higher at 2.86 percent. A trade at the four-year high at 2.885 percent earlier in the week fueled the massive sell-off in the stock market.

If investors drive the 10-year through 2.885 percent then stocks could sell off violently later in the session.

In other news, E-commerce giant Amazon announced it is gearing up to launch a delivery service for businesses. This drove down shares of FedEx and UPS.

The slide in oil prices is also driving down the energy sector which is having a negative influence on the S&P 500 Index. Exxon Mobil is down more than 10 percent since oil prices have begun retreating.

Continue to monitor Treasury yields since they are controlling the price action.

March E-mini S&P 500 Index futures have to take out 2628.00 to sustain the rally. This price could act like a pivot the rest of the session.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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