Major US stock indices are falling to new session lows:
- The Dow Jones Industrial Average is down -482 points, or -1.43% to 33338.52
- The S&P index fell -1.38% at -56.4 points or 4022.70
- The NASDAQ Index fell -202.22 points or -1.72% at 11584.50
Looking at the S&P index, it fell short with its 200-hour moving average at 4047.27, below the 38.2% retracement of its rise from its December 22 low of 4030.82. The next target is his swing low from 4015.55 on January 30th. The 200 hour moving average is currently the risk definition level for sellers. Stable is more bearish. The last time the price broke below his 200-day moving average on January 19th.
U.S. yields are high, but off the high end:
- 2 years 4.699% +7.6 basis points
- 5 years 4.129% +9.4 basis points
- 10 years 3.909% +8.2 basis points
- 30 years 3.935% +4.7 basis points
The 2-year yield briefly topped last week’s high yield of 4.718%. High Yield hit 4.725% at today’s session high. That yield is his highest since November 8th.
Stronger US data puts the risk of future Fed tightening into the market. Keeping the terminal rate at 5.25% in line with the Fed’s game plan could be more difficult given that spending remains strong.
This article was written by Greg Michalowski at www.forexlive.com.