📉US100 plunges over 3.0%

US100 fell 3.3% giving back some of the sharp gains seen in the previous session, as bond yields resumed their upward march following recent data and fresh hawkish comments from FED members raised concerns of inflation becoming even more entrenched. Better than expected claims figures indicate that the labour market remains resilient and may withstand additional rate hikes. Hawkish rhetoric adopted by several Fed policymakers about the central bank’s battle against inflation also weighed on market sentiment. Fed Mester said policymakers are not at a point where they should consider halting rate hikes. In her opinion inflation is expected to fall, but we will need a higher Fed funds rate to achieve that. Fed Bullard said there's a risk management emphasis, which means we need to stay higher for longer. 

US100 fell sharply to recent lows at 11200 pts, which is also marked with a lower limit of the 1:1 structure. Should break lower occur, downward move may accelerate towards next support at 10460 pts which coincides with 61.8% Fibonacci retracement of the upward wave launched in March 2020. On the other hand, as long as the index sits above the aforementioned support level, upward correction may still be launched. The first resistance to watch lies at psychological 12000 pts level. Source: xStation5