S&P 500 DOWN ON RISING YIELDS & PAYROLLS
S&P 500 futures are currently trading at 2894.50- lower by about 0.52% as compared to the previous close. The index futures have been continuously losing momentum since the last two trading sessions. Further back, it has closed in the negative, in 3 out of the past 4 trading sessions.
The S&P 500 traded lower as tech stocks underperformed on Friday. Analog Devices off by 2.42% and Adobe inched down 0.37% at the time of writing.
Treasury Yields continued to rise on Friday, with the U.S. 10-year Treasury note up 2.4 basis points to 3.22% at the time of rising. US 30-year treasury yield rose to 3.39% at the time of writing.
Top losers in the S&P 500 include Texas Instruments (down 2.09%), Netflix (down 2.38%) and Microchip Technology (down 2.55%) at the time of writing. Costco Wholesale corp. fell 3.14% after the company said late on Thursday that it has found a material weakness in its control related to its IT systems that support its Financial Reporting process.
On the economic front, Nonfarm Payrolls for Sept. released earlier today came in at 134K. Payroll numbers was below the expectation of 185K. Payroll figures for August was 201K. In addition, the Unemployment rate for Sept. also out today came in at 3.7 %( nearly a 49-year low). The Unemployment rate was better than the expectation of 3.8% with the Unemployment rate being 3.9% in August. Other economic data out on Friday include the U.S. trade deficit, which widened to $53.2 billion in August even amid an ongoing trade spat between the U.S. and some of its key trade partners.
On the technical front, the RSI is currently at 43.7% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
Overall Bias is Negative and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 2902, Take Profit At 2884 Stop Loss At 2911