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SP500 tested new lows amid worries about an additional rate hike from the Fed. Case-Shiller Home Price Index showed that home prices were rising despite high mortgage rates. Thus, Fed may be forced to do more to cool the housing market. The disappointing CB Consumer Confidence report put additional pressure on stocks. The pullback is broad, and all market sectors are under significant pressure. Treasury yields tested new highs today, which was bearish for rate-sensitive sectors like Utilities and Real Estate. Energy stocks were also moving lower despite the rebound in the oil markets.
Currently, SP500 is trying to settle below the support in the 4260 – 4280 range. It remains to be seen whether this attempt is successful as RSI is in the oversold territory.
NASDAQ tests support at 14,560 – 14,680 as the appetite for risk declines. Mega cap stocks like Amazon, Alphabet, and Microsoft are down by 2% – 4% in today’s trading session.
In NASDAQ’s case, RSI has also moved into the oversold territory. However, there is enough room to gain additional downside momentum as RSI stays above the recent lows.
Dow Jones
Dow Jones pulled back amid a broad sell-off in the equity markets. The pullback is extremely broad as 28 out of 30 Dow Jones components are moving lower today.
The current trend is strong, but RSI is already close to the extremely oversold territory, which means that the risks of a rebound are high.
For a look at all of today’s economic events, check out our economic calendar.
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