US yields continue to move higher with the longer and outpacing the short end. The 30-year yield is up 12.4 basis points to 4.288% (the highest level since November). The 10-year is up 10.3 basis points to 4.182% (also the highest level since November).
The rise in yields is helping to depress stock levels. A snapshot of the market 10 minutes into the open is showing:
- Dow industrial average is down -94.85 points or -0.27% at 35187.68
- S&P index is down -19.32 points or -0.43% at 4494.08
- NASDAQ index is down 40.23 points or -0.29% at 13935
Looking at the hourly chart of the NASDAQ index, it opened near its 200 hour moving average at 13934.07. The high price reached 13938.59 before rotating to the downside. The 50% of the move up from the January 26 low comes in at 13890.49. Stay below the 200 hour moving average is more bearish. Move below the 50% retracement and staying below increases the bearish bias.
NASDAQ index is below its 200 hour moving average
For the S&P index, it moved below its 38.2% retracement of the move up from the January 27 low at 4500.50. Staying below the level is more bearish.
The next key target comes against its 200-hour moving average of 4481.18 (green line in the chart below). The last time the price of the S&P traded below its 200-hour moving average was way back on May 24 (not shown). Key target in the short term for the buyers and sellers.
S&P index is approaching its 200 hour moving average