A squeeze feeling in the major indices
The major US indices are squeezing to the upside with the NASDAQ index leading the way.
The numbers are currently showing:
- S&P index up 31.77 points or 0.98% at 3275.36
- NASDAQ index up 106.38 points or 1.16% at 9245.80
- Dow is up 212 points or 0.74% at 28747.46
Yesterday the S&P and Dow both fell by -1.57%. The NASDAQ index was lower by -1.89%.
Although higher, there is some work to do from a technical perspective. For the NASDAQ index, the pair is approaching its 100 hour moving average at 9268.09 (blue line in the chart above). The 50% retracement of the move down from Monday's high is also near that level at 9267.599. The combination should give traders cause for pause against that area.
In trading yesterday the pair gapped below the 100 hour moving average line but found support buyers ahead of its 200 hour moving average (green line currently at 9102.122). Holding the level is a positive from a technical perspective.
Other risk on flows are picking up along with the stocks:
- Spot gold is down $-12.20 or -0.77% at $1569.80. Gold tends to rise during "risk off" market conditions and falls during "risk on" periods.
- WTI crude oil futures are up $0.56 or 1.04% at $53.70. Crude oil has been hit on expectations for slower growth. That fear is abating at least for now.
US yields are ticking higher and trading near high yields for the day as flight to safety of treasuries slows:
- 2 year 1.450%, +1.0 basis points
- 5 year 1.467%, +2.6 basis points
- 10 year 1.644%, +3.6 basis points
- 30 year 2.096%, +4.0 basis points
The USDJPY is also getting in the act and trades at its highest level of the day (and the week). The falling 100 hour moving average currently comes in at 109.32. Also at that level is the 38.2% retracement of the move down from the high price on January 17. That level would be a key target on the topside.
