STOCKS INDEXES REMAIN UNDER PRESSURE -- MOVING AVERAGE LINES ARE BEING THREATENED -- INVESTORS BUY BONDS AND GOLD

MOVING AVERAGE LINES ARE BEING THREATENED... A combination of factors are pushing stocks lower again today to extend weekly losses.   A weak jobs report this morning, fears of accelerated Fed tightening to fight inflation, and worries about the Omicron coronavirus are keeping stocks on the defensive.  Ånd moving lines are being threatened.  Chart 1 shows the Dow Industrials testing its 200-day moving average and potential chart support along their September/October lows.   Chart 2 shows the S&P 500 in danger of ending the week below its 50-day average.  And Chart 3 shows the Nasdaq 100 in danger of doing the same.  Nine of eleven sectors are losing ground.   Defensive consumer staples and utilities are holding up better; while consumer discretionary, technology, and financials are suffering the biggest losses.   Money is moving into bonds and gold; while volatility is also rising.

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BOND YIELDS TUMBLE IN FLIGHT TO SAFETY AS VIX SURGES... Chart 4 shows the 10-Year Treasury yield tumbling 10 basis points to 1.34% which is the lowest level in more than two months.    Chart 5 shows the CBOE Volatility (VIX) Index jumping to the highest level in ten months.  Rising volatility is usually associated with falling stock prices.

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