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The SPX500 has charted a series of lower peaks followed by lower troughs on its weekly chart. This puts the weekly into a defined downtrend. Importantly, the down trend’s trendline has shifted down from the green trendline to the orange trendline. This indicates that the downtrend is accelerating. It is not surprising to see the weekly RSI on the bearish side of 50 (green rectangle). The longer it maintains below…
Treasury yields are pulling back from their multi-year highs and the index finds some reprieve, turning now to earnings from tech giants like Meta and a series of high-impact economic releases
The index heads to a losing week due to elevated bond yields, Mr Powell’s speech where he kept the door open to more hikes and Tesla’s poor results that outweighed the strong report by Netflix
The US 10-year Treasury yield is trading at 4.97%, just shy of the psychological 5% level. This is likely to weigh on the stock market. In effect, the higher interest rates mean that yields on risk-free treasuries have increased making them compelling to investors. Even those sitting in cash will feel the benefit of the higher yields. Moreover, with these type of returns from yielding assets, it will discourage investing…
HKG33 is mixed as markets digest better than expected economic releases from China, BYD’s strong profit estimate and new export bans of AI chip for the US
The index falls as markets digest the latest economic releases and plans for more AI chips export restrictions, ahead of incoming Tesla & Netflix quarterly results, as well as scheduled speech by Fed Chair Powell
The US 10-year real yield is moving higher. Its green 5-day EMA is pulling away from its orange 10-day EMA (black circle) and the RSI is moving higher and away from 50 (green rectangle). As yields appreciate, they tend to act as a headwind to the risk side of the market.
As Q3 earnings season kicks off the SPX500 is looking subdued. It has charted a lower peak followed by a lower trough. This puts the weekly chart into downtrend. The black 30-week EMA is showing signs of support, but the candlesticks will need to break above the green down sloping trendline to show conviction.
HKG33 stays under pressure as today’s data from China showed non-existent consumer inflation for September, while markets continue to monitor developments around the troubled property sector
The DAX is benefitting from the pullback in yields, as a risk-on sentiment tries to take hold. To this end, FXCM’s GER30 is showing signs of positivity.
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