Market Trading Update – Friday, May 19
We’re seeing another day of bouncing in the S&P 500 (INDEXSP:.INX) and other broad equity indices. Elsewhere, European stocks are also rallying while Asia is largely mixed.
The U.S. Dollar Index (CURRENCY:USD) is getting hit hard yet again vs both the Pound Sterling and Euro (just slight weakness vs Yen). Treasury Bonds are moving lower as well, with 10 year treasury yields (INDEXCBOE:TNX) moving up to 2.24. Overall, it’s tough to say with any certainty that lows are in… still wait and see.
Market trends and momentum remain negative from last week with only 20% of all stocks are above their 10-day moving average, with only 46% above their 50 moving average.
Much attention should be paid to Treasuries, as yields are likely to lead stocks in my opinion. Â Thus far, today’s bounce in yields is seen as a minor positive, but yet no definitive sign of yields having bottomed just yet.
S&P 500 Index
Still looks a bit early to think the worst is over. The breakdown Wednesday has seen a bit of bounce but prices remain in “No-man’s Land”.  Will be key to recoup (and hold) 2375 on futures.
Get more of my ideas and daily trading insights over at Newton Advisor.  Thanks for reading and have a great weekend!
Twitter: Â @MarkNewtonCMT
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
