S&P 500 Trading Outlook (2-3 Days):Â Bearish
Pullbacks are likely limited to the next 2-3 days before the rally continues.
I expect yesterday’s decline might lead to additional selling pressure before this is complete. Use early strength today to consider lightening up for further weakness.
On the downside: 2745 will be key and if broken will result in a test of yesterday’s price lows.
On the upside: A move back above 2789 is needed to expect that the rally continues without further decline.
10-Year Yield / Interest Rates
The S&P 500 is attempting to stabilize after new Federal Reserve Chair Jerome Powell’s testimony hit stocks yesterday. It is still likely that interest rates move higher into end of week/early next and that might put a bit more pressure on market
The key for investors will be whether or not the 10-Year Treasury Yield gets back over 2.91. If it does, this would cause movement up to 2.93-4 and result in a bit more pressure on the S&P 500.
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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.
