SPX & NKY Standstill as Treasure Yield Rises to 3% – Earning Reports Eyed

Posted Tuesday, April 24, 2018 by
Arslan Butt

Who’s up for trading the S&P 500 and Nikkei today? The volatility in the stock markets is likely to get us some nice trades today. Stock indices are getting extremely volatile for two reasons. Let’s find out…

Earning Season & Economic Events

It’s a busy week with earnings reports ahead. In particular, I will be looking for the release of Alphabet, Facebook, Twitter, and other tech giants. In addition, we have a BOJ (Bank of Japan) monetary policy decision and the U.S. GDP results on Friday which will be impacting both of the S&P 500 and the Nikkei.

U.S. 10-year Bond Yield – 3%

Secondly, the rise in the bond yield is gaining investors’ attention. Fellows, in the investment world we have four options to invest in which include stocks, forex, commodities, and the bond market. If the bond market is giving high returns, would you like to invest in risky assets? I wouldn’t prefer that since I can make risk-free money on bonds. Thus, investors seem to shift their investments to the bond market from stocks, which is ultimately driving bearish trends in the market. If you are looking to invest in stocks, make sure to follow the earning reports by NASDAQ.

Let’s take a quick look at the support & resistance levels for the S&P 500 and Nikkei.  

S&P 500 – Technical Levels

Support     Resistance

2662.17    2687.63

2654.3    2695.5

2641.57    2708.23

Key Trading Level:    2674.9

Nikkei – Technical Levels

Support     Resistance

22066.24    22172.7

22033.36    22205.58

21980.13    22258.81

Key Trading Level:    22119.47

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About the author

Arslan Butt is our Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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