Futures are down, as fears increasing

US 10-year Yields under 1.3%

By: Ahura Chalki

Market analyst – IFC Markets

As Future markets are falling, Asian Markets closed lower, same as European, US Stocks set to open sharply lower after tapering hint.

US 10-year Yields fall under 1.3%, down to 1.26% ts lowest since February. US VIX also above 21, signaling higher risk in the market, which drives the cash flow to the safe-havens. 

The first reaction to the FED meeting minutes was flat. Stock markets printed new all-time highest, however with more research and reading, probably the part, which is talking about discussion of some members that are hoping to start reducing the amount of the purchase of mortgage-backed securities (MBS) as a priority to avoid the financial risks that may arise from rising housing prices getting more attention. 

On the other hand, raising the numbers of new infections to the Cronavirouse again hit the market sentiment and added doubts on the recovery pace. 

So far and before opening the cash market, Dow Jones futures were down some 495 points, or 1.43%, while S&P 500 futures were also down 1.43% and Nasdaq 100 futures were down 1.53%. 

SP500 technical analysis- H4

S&P 500 breached all support lines, down to 4,278, and now with a small correction, it’s floating around the critical level of 4,300. Technical indicators are supporting deeper numbers, while RSI at 35, supporting the trend strength. 4,250 is the next target if the index can stay under the 4,300 level. 

Futures Market


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