Most of Europe has rebounded from early lows and is staging a strong rally off of support. This type of resilience is also being seen in the U.S. Equities markets.
Just as the major stock market indices broke down yesterday, they are now reversing the losses and trying to recoup key trading areas. For the S&P 500 (NYSEARCA:SPY), that level is 2431.
The Technology Sector (NYSEARCA:XLK) is also weak after getting down near the June lows – this is truly an important price support level for Technology. Â And although the rally is potentially constructive, it did do some additional damage. The trend is trying to turn down… but won’t definitively do so until we see some follow through confirmation. Clearly, that is not happening today.
Worth noting that Crude Oil and Gold are up a little bit, as are treasury yields. Â But nothing eye-opening. The 10 year treasury yield () is testing resistance at 2.23.
Holding above 2431 on S&P 500 futures neutralizes the selling, while trading below this level remains bearish. 2413 and 2385 are lower support levels. Keep an eye on technology stocks as a guide.
Chart Spotlight – S&P 500 Cash Index (trend line)
This key index needs to regain 2435 (or better yet 2440).
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Twitter: Â @MarkNewtonCMT
Author has positions in mentioned securities at the time of publication. 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.
