S&P 500
Dow Jones is back up at $32,619.5 after hitting a two-week low on Thursday. The rise has been fuelled by the surge in US treasury yields and the continued strengthening of the greenback. At the same time, the fear and greed index has fallen from last week’s neutral of 55 to 40. The put and call options are indicating investors’ extreme fear while the market momentum and volatility remain neutral. Besides, the stock price breadth and strength, as well as safe haven demand, are signalling fear in the market.
On Friday, the 10-year bond yields were up by 2.74% at 1.658. Similarly, the 30-year yields rose by 2.02% to 2.381. The rallying of bond yields has continued to offer support to the US dollar. Earlier in today’s session, the dollar index maintained yesterday’s gains by trading at its highest level since November 2020. It has since pulled back from $92.92 to $92.75.
Dow Jones Index is trading higher by 0.62% after hitting a two-week low in the previous session. It is moving along the 20 and 50-day exponential moving averages. For one week now, the DJIA has been range-bound between $32,800 and $32,400. With an overall neutral outlook, it is likely to end the week within this range. However, if the bulls manage to push the pair past the resistance level in today’s session or in the coming week, the next target will be $33,200. On the flip side, the bears may try to break past the support level of $32,400 to the lower end of $32,000.
