Technical Analysis

US stocks open lower but off pre-market low levels

The major US indices are opening lower, but off the premarket low levels as better than expected US data quelled some of the recessionary fear- at least for the time being.

A snapshot of the market three minutes into the open is currently showing

  • Dow Industrial Average -166.90 points or -0.50% at 33130.07
  • S&P index -16.23 points or -0.41% at 3912.62
  • NASDAQ index -39.04 points or -0.36% at 10917.98
  • Russell 2000-12.01 points or -0.65% at 1842.34

IN the US debt market yield modestly higher:

  • two year 4.109% +3.4 basis points
  • five year 3.470% +3.8 basis points
  • 10 year 3.393% +1.8 basis points
  • 30 year 3.556% +1.4 basis points

Earlier today, the US 10 year yield bounced off its 200 day moving average near 3.331%. The 50% retracement of the move up from the August low comes in at 3.426% and is the next upside target to get to and through the bottom is in place for yields. After that look for the 3.50% level, the 3.640% (broken 38.2% retracement), and the 100 day moving average of 3.719% to be upside target on further momentum in that direction. Needless to say on the downside, getting below the 200 day moving average is key.

US 10 year yield bounced off its 200 day moving average

In other markets:

  • Gold is up $12.22 or 0.63% at $1916.50
  • Silver is up eight cents or 0.34% at $23.52
  • Crude oil is back above the $80 level at $80.40 that’s up $0.58 on the day
  • Bitcoin remains below the $21,000 level at $20,837, but his off session lows of $20,654.

The AUDUSD and the NZDUSD are getting a bounce off lows after each of those currency pairs were sold steadily today on risk off sentiment. The New Zealand Prime Minister also resigned unexpectedly which help to tilt the bias the downside.

For the NZDUSD it is trading back above its 200 hour moving average at 0.63907 but below its higher 100 hour moving average at 0.64098. The current price trades at 0.6394. Earlier today the price try to find support against the 100 hour moving average, but could not stay above that level. That tilted the bias back to the downside. The price ultimately moved below the 200 hour moving average and move down to test the earlier week lows and 50% midpoint of the move up from the January low those levels came near 0.6360. The low price today reached 0.63641 (see chart below).

NZDUSD bounces off the 50% and week’s lows

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button