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S&P 500 dips into five-month lows at $4,230 as US Treasuries hit record high

  • US equities turned bearish once more, driven lower as risk appetite wanes.
  • US Treasury yields hit a 17-year high as investors head for the safe haven hills.
  • Tuesday's declines see markets fully entering bear market territory.

The Standard & Poor's (S&P) 500 equity index closed down 1.37% for Tuesday, dipping below $4,230.00 and extending recent losses as investors continue to get pushed out out of the risk appetite trough.

The S&P is seeing its lowest prices in five months, and the Dow Jones Industrial Average (DJIA) had its worst trading day since August, slipping 430 points to close down 1.3% at $33,002.38.

The NASDAQ Composite Index was the biggest major index loser of the US trading session, falling 1.87% to close at $13,059.47, shedding over 248 points on the day.

US economic data continues to beat expectations, with US jobs figures hinting at continued underlying strength in the US economy, raising concerns that the Federal Reserve (Fed) may have to raise interest rates even further looking forward.

The 10-year US Treasury hit a yield of 4.8% on Tuesday, with the 30-year Treasury hitting 4.925%. Both Treasuries are at their highest yields since 2007.

S&P 500 technical outlook

The S&P 500 is set to crash into the 200-day Simple Moving Average (SMA) currently parked just beneath Tuesday's low bids, and the 34-day Exponential Moving Average (EMA) has turned bearish from $4,400, trapping any bullish rebounds under technical resistance.

The S&P is off nearly 6.5% from the last swing high near $4,520 and remains down 8.16% from the year's high at $4,607.

A bearish continuation will leave the way towards $4,000 clear for the S&P 500, while a bullish rebound will need to reclaim territory all the way up to $4,500 before a re-established bullish trend can be baked into the charts.

S&P 500 daily chart

S&P 500 technical levels

SP 500

Overview
Today last price4229.73
Today Daily Change-56.96
Today Daily Change %-1.33
Today daily open4286.69
 
Trends
Daily SMA204396.46
Daily SMA504445.78
Daily SMA1004397.2
Daily SMA2004212.83
 
Levels
Previous Daily High4317.41
Previous Daily Low4259.1
Previous Weekly High4337.8
Previous Weekly Low4237.48
Previous Monthly High4538.24
Previous Monthly Low4237.48
Daily Fibonacci 38.2%4295.14
Daily Fibonacci 61.8%4281.37
Daily Pivot Point S14258.06
Daily Pivot Point S24229.42
Daily Pivot Point S34199.75
Daily Pivot Point R14316.37
Daily Pivot Point R24346.04
Daily Pivot Point R34374.68

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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