The stock market struggled to find footing today as a surge in U.S. Treasury yields continued to pressure risk assets. Both long- and short-term government bond yields pushed to levels not seen in decades, capping any meaningful rebounds in equities. The benchmark 10-year Treasury yield climbed to 5.29%, marking its highest peak since 2007, while the 30-year yield surged to 5.62%, its highest mark since 2002.
Adding to the bearish sentiment was a duo of weak economic reports. Data from The Conference Board revealed that U.S. consumer confidence has slumped to its lowest level since 2014, driven by anxieties over the cost of living and the labor market. This was followed by the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), which showed U.S. job openings fell to 7.09 million in August. Missing economists’ forecasts, this indicates a cooling job market ahead of Friday’s highly anticipated nonfarm payrolls report.
We studied during the weekend the structural cracks in the SPX, yesterday the breach of the Central Weekly Level suggested negative continuation, and for today, the anticipated Central Daily Level (CDL) at 7,691 (the demarcation point for bullish or bearish momentum for the day) was breached during the first minutes of the market open.
Selling pressure pushed the index down to our anticipated daily support level at 7,658, where it found stability, validating how institutional algorithms react to these modeled levels updated every day for the next session. The gap at 7,657 from last week was filled as anticipated, all the gains from Monday, September 21st, have been wiped out. As I highlighted that Monday afternoon, chasing the rally carried significant risks and that gap was going to be filled.
Today’s Agenda
Daily and Weekly Levels Combined for SPX, ES=F, NVDA, AMD, AVGO, and MU
Daily plan for SPX, ES=F
Watchlist Tracker - Zoom in to GOOG, TSLA, SPCX, and AMZN
Daily and Weekly Levels Combined for SPX, ES=F, NVDA, AMD, AVGO, and MU
Let’s begin with Micron (MU) the company will be posting earnings tomorrow after the market close, the implied volatility for the stock is an expected price move of roughly 7.7% to 8.1%: