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9:21 AM · 23 October 2023

US500 deepens slide as 10-year US yields hit 5%

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Lack of escalation in the Middle East over the weekend led to a rather calm beginning of a new week. European and US index futures traded higher during the Asia-Pacific session. However, things changed after the launch of the European cash session. Major blue chips indices began to lose ground as yields resumed climbing. 10-year US yields jump above psychological 5.00% today for the first time since 2007.

Taking a look at S&P 500 futures (US500) chart at D1 interval, we can see that the index broke below the 200-session moving average (purple line) on Friday and continues to move lower today. Lows from the beginning of October in the 4,235 pts area are being tested at press time. Note that the lower limit of the Overbalance structure can also be found there and should see a break below it, a bearish trend reversal would occur. The next support zone to watch can be found in the 4,200 pts area, near 61.8% retracement of the upward move launched in October 2022.

Source: xStation5

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