Earnings missed, NASDAQ down, what else?
Market analyst – IFC Markets
After the Monday holiday, the US market opened lower and trading much lower as well, after mix earnings data, and bond yields jump.
On the earnings front, today we had important banking reports, including Charles Schwab (SCHW) and Goldman Sachs (GS), and both missed the expectations.
At the same time, today US 10-years bond yields jumped over .185%. 2 and 5 years treasury yields also last sen at 1.04% and 2.18% respectively. All show more than two years' high levels. These fast yields increasing cause the US dollar also increase again while increasing the market risk also was another fuel for that to touch the one-week high above 1.80%
Following these changes and transformations, US stock markets opened broadly lower again on Monday and during the day, even decreased more as, on top of all of the mentioned reasons, inflation fears also increased much more.
When bond yields are decreasing, we know that it usually outs the tech stocks under pressure, therefore it is so likely to see the NASDAQ much lower comparing other leading indices. While we are getting closer to the last trading hours on the Wall Street, Dow Jones is down by 1.4%, SP500 trading 1.7% lower, and NASDAQ Composite losing 2.2%.
From the technical point of view also as we can see in the below figure, NASDAQ moves in the clear downtrend. Price moves under Ichimoku cloud. Senkou span B at 15,570 is the first resistance at the moment, however, the main resistance sits at 15,912, which is the Kijun-sen line in the Daily chart as well. RSI at 36 and falling OBV trend line also are other reasons that for now, we can count on bears more than bulls. Lower than the current level, main support sits at 15,000.