JUMP IN BOND YIELDS WEIGH ON STOCKS -- S&P 500 TRADES BELOW ITS 50-DAY AVERAGE

BOND YIELD JUMPS... Bond yields are spiking higher again today following dovish remarks from Jerome Powell.      Chart 1 shows the 10-Year Treasury yield jumping 7 basis points to 1.54% and putting in on track for the highest close in more than a year.   As a result, stocks are coming under pressure.   The biggest hit is being seen in technology stocks which are especially sensitive to rising yields.   But the Dow and S&P 500 are also losing ground.

QQQ LEADS RETREAT...THE S&P 500 TRADES BELOW ITS 50-DAY LINE...Chart 1 shows the Invesco QQQ Trust trading at the lowest level in three months.   The QQQ is also nearing a test of its early September peak just above 300 (horizontal trendline).  The QQQ has been leading the recent selloff in stocks.   The S&P 500 is also suffering some technical weakness.   Chart 3 shows the SPX trading below its 50-day moving average by the widest margin in four months.  That suggests that technology selling is starting to weigh on the broader market.   The Dow is also weakening.   Chart 4 shows the Dow Industrials in danger of slipping below their 50-day line as well.   Nine market sectors are in the red with the biggest losers in technology and consumer discretionary stocks.  Only energy and utilities are trading higher.