The US yields are moving to new highs after the comments from Fitch that the US would remain on negative credit watch (to be resolved in the 3rd quarter).
The 2-year yield is up near 4.5% up 15 basis points and 4.491%. The 10-year yield is at 3.681% up 7.3 basis points. Its high yield reached 3.691%.
10 year yield tests 100/200 hour moving averages
Looking at the hourly chart of the 10-year yield , the high-yield tested the falling 100- hour moving average at 3.688% (moved briefly above the level, but backed off). A move above would have traders looking toward the 200 hour moving average of 3.705%.
The low yield this week reached 3.570% yesterday. That took the yield below the 50% midpoint of the move up from the May 11 low at 3.60% area.
Meanwhile, stocks are relatively unfazed:
- Dow Industrial Average is up 670.84 points or 2.03%
- S&P index is up 62.46 points or 1.48%
- NASDAQ index is up 142 points or 1.08%
There IS a crack in the Nvidia bandwagon. It is down -$4.20 or -1.0% on the day.
However, if you look at Adobe, after a dip earlier this week is up 5.21% this week after rising 11.89% last week and 10.67% the week before last. Today, the price is up $10.34 or 2.42%. The move took the price above the 200-week MA at $429.58. The 100-week MA comes in at $448.43 and is the next target. In between, is the 38.2% of the move down from the November 2021 high. That level comes in at $437.01.
Adobe is up testing 200/100 week moving averages