Wall Street finished Tuesday's session in the red, as a mild rebound staged the previous day failed to carry over into a second session. The Dow and S&P 500 finished with modest losses. Meanwhile, the Nasdaq slipped just below the unchanged mark in the final moments of trading after showing an advance through much of the session.
Stocks are seeking direction after last week's retreat, when concerns about the Federal Reserve's interest rate policy weighed on the market.
While the latest inflation data indicated a continuation of Fed tightening, the geopolitical landscape and the impending U.S. debt ceiling issue could cause substantial volatility across all asset classes. Watch the risk-reward dynamics of all trades and investment portfolios, as extreme price variance could return in the blink of an eye.
Looking at the day's notable U.S. economic news, the Chicago purchasing managers index unexpected fell to 43.6 in February. This came in below the 45 that economists were predicting.
Elsewhere, the Conference Board's measure of consumer confidence in February also posted a surprise decline. The figure declined to 102.9, compared to the predicted level of 108.5.
The yield on 10-year Treasury bonds rose by 6 basis points to 3.98%, approaching 4% again and hitting the highest level in almost four months since November 6 last year. The yield has risen nearly 40 basis points in February, the largest monthly increase since September last year.
The 2-year yield, which is sensitive to monetary policy, rose by 4 basis points and exceeded 0.483%, hitting the highest level since the end of October last year, and also approaching the high level since July 2007. The yield has risen nearly 60 basis points in February.
Citigroup strategists said that in the volatile trading last week, traders increased their short positions in S&P 500 futures by nearly $3 billion, while net withdrawals from exchange-traded funds (ETFs) amounted to $5.1 billion.
Chart: SPX daily and 30 mins
From the tech side of analysis, 200 EMA is crucial for the SPX. If the S&P 500 index falls below its 200-day moving average, quant funds will massively sell off. Last Friday, the index was less than 1% away from this 3940 level.
Chart: SPX 30 mins and 15 mins
And on 15 and 30 mins time frame, market will find its direction in next coming two days. Based on the current trend, as long as the correction holds above the 200-day moving average, there is no need to be too afraid. The upward momentum still exists, and there is a possibility of a resurgence in March. However, if it falls below the 200-day moving average, which is 3940, it will be dangerous, and the next target for the next decline will be to test 3800 points.
Please feel free to express your ideas and thoughts in the comment section.
Stocks are seeking direction after last week's retreat, when concerns about the Federal Reserve's interest rate policy weighed on the market.
While the latest inflation data indicated a continuation of Fed tightening, the geopolitical landscape and the impending U.S. debt ceiling issue could cause substantial volatility across all asset classes. Watch the risk-reward dynamics of all trades and investment portfolios, as extreme price variance could return in the blink of an eye.
Looking at the day's notable U.S. economic news, the Chicago purchasing managers index unexpected fell to 43.6 in February. This came in below the 45 that economists were predicting.
Elsewhere, the Conference Board's measure of consumer confidence in February also posted a surprise decline. The figure declined to 102.9, compared to the predicted level of 108.5.
The yield on 10-year Treasury bonds rose by 6 basis points to 3.98%, approaching 4% again and hitting the highest level in almost four months since November 6 last year. The yield has risen nearly 40 basis points in February, the largest monthly increase since September last year.
The 2-year yield, which is sensitive to monetary policy, rose by 4 basis points and exceeded 0.483%, hitting the highest level since the end of October last year, and also approaching the high level since July 2007. The yield has risen nearly 60 basis points in February.
Citigroup strategists said that in the volatile trading last week, traders increased their short positions in S&P 500 futures by nearly $3 billion, while net withdrawals from exchange-traded funds (ETFs) amounted to $5.1 billion.
From the tech side of analysis, 200 EMA is crucial for the SPX. If the S&P 500 index falls below its 200-day moving average, quant funds will massively sell off. Last Friday, the index was less than 1% away from this 3940 level.
And on 15 and 30 mins time frame, market will find its direction in next coming two days. Based on the current trend, as long as the correction holds above the 200-day moving average, there is no need to be too afraid. The upward momentum still exists, and there is a possibility of a resurgence in March. However, if it falls below the 200-day moving average, which is 3940, it will be dangerous, and the next target for the next decline will be to test 3800 points.
Please feel free to express your ideas and thoughts in the comment section.
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