Market outlook week 4/17
Recap : Risk off theme persisted for the shortened week and resulted in a weak price action in Nasdaq and SPX. For the week SPX: -2.13% COMP: -2.63% DOW: -.78% IWM: +.55% Falling bonds are sending yields much higher. 10yr yields went to 2.83%. Resistance at 3.2% could see bonds fall further and sending yields higher. Nasdaq could see further price deterioration in the above scenario of bonds selling. Sector Performance : Communication Svcs: 1.77% Basic Materials: 1.52% Energy: +1.22% Consumer Defensive: -.18% Industrials: .55% Financials: 1.53% Health care: -2.53% Consumer Cyclical: -.19% Technology: -2.66% Vix: +7.28% Indicies: SPX (Weekly): Support at 50week ma did not hold after prices rose through it two weeks ago. Positive price action should have seen buyers defend that 21/50 week ma on that pullback to those levels last week. Instead price closed below all weekly MAs and closed lower for the week. Weak price action confirms that bearish move will continue unless price cros...