US Equity indices have been trending lower as Treasury yields have pushed higher this week. SPX and QQQ might not break August lows right away, however, and technically there could be a low that happens into end of week. At present, trends and momentum are short-term negative, but should be nearing support.
Wednesday’s post FOMC release comments by Powell cemented in place the “higher for longer” mentality, and despite the Federal Reserve leaving rates unchanged, the “Hawkish Pause” that had been anticipated by markets resulted in Two-Year Treasury Note Yields breaking out to the highest levels in over 15 years.
As discussed yesterday, despite the Treasury decline being seemingly in its latter stages, there DeMark exhaustion remains premature to signal exhaustion. Thus, a larger stalling out/rollover in yields might require another 2-3 weeks. At present, yields are pushing higher.
Overall, I suspect that SPX and QQQ might find it difficult to immediately break down under August lows, and any SPX weakness down under 4400 likely creates an attractive Risk-reward into end of quarter.Bottom line, while there’s no specific technical proof just yet that markets are bottoming, the next...