S&P 500 Resumes Decline at 100 SMA, After Soft Treasury Auction

The main US stock indices opened significantly higher today. The S&P 500 index rose 75 points, but reversed and ended the day lower. Fifteen minutes after the market opened, the Dow Industrial Average was up 300 points, or 0.80%, at 39,295 points. The S&P index rose 75 points, or 1.50%, to 5,315 points, while the NASDAQ index increased by 310 points, or 1.9%, to 16,700 points. However, this positive momentum was short-lived as concerns returned to the financial markets, causing risk sentiment to turn negative again following a lackluster Treasury Auction. Consequently, both stocks and risk currencies ended the day lower.

S&P Index Testing Crucial Support Level

The S&P index was technically testing the 100-day moving average at 5,335.74. After dropping to this moving average on Friday and opening with a bearish gap below it during Monday’s sharp decline, the index found support at this level. Buyers challenged the moving average again today, a crucial test to determine the bullish and bearish trends. A break above this level would have shifted the bias further to the positive. However, the price was rejected, and the SPX 500 fell back, ending the day lower.

Global Equities Hit by Treasury Auction Results

Global equities markets took a turn for the worse when a dismal 10-year Treasury auction resulted in higher rates. Although the bond market has steadied since then, stocks are currently at their lowest point of the day. The AUD and the NZD/USD are both in negative territory due to this price action in the forex market. Chipmakers led the market sell-off, with Nvidia’s stock initially jumping 3% but then falling by 3% to around $100, with Broadcom and Micron following suit.

S&P 500 Chart Daily – The 100 SMA Has Turned Into Resistance

S&P500 Live Chart