SPIKE IN BOND YIELDS PUSHES STOCKS LOWER -- QQQ TRADES BELOW 50-DAY LINE

John Murphy
by John Murphy,
Pioneer Technical Analyst

10-YEAR YIELD REACHES 1.50%... The 10-Year Treasury yield is spiking above 1.50% today for the first time in a year.   The size and speed of the yield advance is putting downside pressure on stocks, and technology stocks in particular.   Chart 1 shows the Invesco QQQ Trust trading below its 50-day average.   A close below that support line could signal a deeper market pullback.   While all stock indexes are trading sharply lower, the tech-dominated Nasdaq market is leading the retreat.   All eleven market sectors are down with the biggest losses in consumer cyclicals and technology.   Chart 2 shows the S&P 500 heading for a possible test of its 50-day average.   Value stocks that have been benefiting from a rotation out of technology shares are also losing ground today.

Chart 1
Chart 2
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John Murphy
About The Author:

A trailblazer in intermarket analysis, John authored key texts that shaped technical trading and helped generations of investors decode market trends using charts and correlations. Learn More 

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Tech Taps the Brakes, Homebuilders Hit the Gas: See the Rotation on StockCharts Today

Tech Taps the Brakes, Homebuilders Hit the Gas: See the Rotation on StockCharts Today

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by Jayanthi Gopalakrishnan,
Director of Site Content, StockCharts.com

KEY TAKEAWAYS * The S&P 500 notched a tiny new high while mega-cap tech cooled. Check the Market Summary Factors and MarketCarpet to see the rotation. * XHB cleared its 200-day moving average, and precious metals rose. * With GOOGL, TSLA, and IBM on deck and housing data due, stay patient...   READ MORE 

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The Best Five Sectors, #28

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Julius de Kempenaer
by Julius de Kempenaer,
Senior Technical Analyst, StockCharts.com

KEY TAKEAWAYS * No changes in sector ranking composition this week, a rare occurrence * Technology sector continues to dominate, showing sustained strength * Industrials rotating out of leading quadrant but maintaining second-highest RS ratio * Financials and materials showing negative trends, potentially exiting top 5 Sector Rotation Stalls, Tech Remains King Despite a...   READ MORE 

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Week Ahead: NIFTY Violates Short-Term Supports; Still Tentatively Devoid of Any Major Triggers

Week Ahead: NIFTY Violates Short-Term Supports; Still Tentatively Devoid of Any Major Triggers

Milan Vaishnav
by Milan Vaishnav,
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The Nifty traded in a broadly sideways and range-bound manner throughout the week, ending it with a modest decline. The Index oscillated within a narrow 276-point range, between 25144.60 on the higher end and 24918.65 on the lower end, before settling mildly lower. The India VIX declined by...   READ MORE 

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Three Bearish Candle Patterns Every Investor Should Know

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by David Keller,
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KEY TAKEAWAYS * The shooting star pattern indicates a short-term rotation from accumulation to distribution. * The bearish engulfing pattern suggests sellers have taken control, suggesting further weakness. * The evening star pattern is a three-candle formation that illustrates an exhaustion of buying power. There is no denying that the broad markets remain...   READ MORE 

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RGTI Stock Surged 30% — Is This the Start of a Quantum Comeback?

RGTI Stock Surged 30% — Is This the Start of a Quantum Comeback?

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by Jayanthi Gopalakrishnan,
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