INDUSTRIALS, MATERIALS, AND TECHNOLOGY PULL MARKET LOWER AS TEN-YEAR TREASURY YIELD TOUCHES 3% -- MAJOR STOCK INDEXES ARE ALSO HEADING INTO ANOTHER TEST OF SUPPORT
SECTOR ETFS TAKE A BIG HIT ... The three stock ETFs shown below are leading the stock market sharply lower. Chart 1 shows the Industrial SPDR (XLI) losing more than 3% and once again threatening its 200-day average. Caterpillar (CAT) is one of its biggest losers with a drop of -6%. Chart 2 shows the Materials SPDR (XLB) falling back below its 200-day line. Freeport McMoran (FCX) is its biggest loser with a loss of -16%. Chart 3 shows the Technology SPDR (XLK) losing 2%. Alphabet (GOOGL) tumbled nearly 5% after a strong earnings report. The rest of the market is also sustaining big losses. The 10-Year Treasury yield touched 3% today for the first time in four years which may have unsettled stock traders. That would also explain why utilities are in the black today. Major U.S. stock indexes are also heading down for another retest of their 200-day averages.
(click to view a live version of this chart)
Chart 1
(click to view a live version of this chart)
Chart 2
(click to view a live version of this chart)
Chart 3
MAJOR STOCK INDEXES HEADED TOWARD BIG TEST... The next three charts of the major U.S. stock indexes don't require much explanation. Charts 4 and 5 show the Dow and the S&P 500 falling toward another test of their 200-day averages. Chart 6 shows the Nasdaq Composite doing the same. The Nasdaq, however, is also headed for a test of a potential "neckline" drawn under its February/April lows. All of which suggests that the market is heading into a very important test.
(click to view a live version of this chart)
Chart 4
(click to view a live version of this chart)
Chart 5
