5/22 Bearish. 150 Buying | 750 Selling.
T2108 is Bearish. Primary Indicator is Bullish – Caution. 20% Weekly is Neutral.
Stocks sold off sharply as Treasury yields surged, driven by inflation fears and a soft 20-year bond auction; broad sector weakness hit 10 of 11 S&P 500 groups with small caps underperforming.
Communication Services bucked the trend, led by Alphabet’s strong post-I/O event gains, while Real Estate, Health Care, Financials, and Consumer Discretionary led the declines. Volatility remains elevated with VXX holding above $56, reflecting ongoing risk aversion.
Fed and economic focus shifts to Thursday’s Initial Jobless Claims and PMI data, which could influence near-term market direction amid ongoing fiscal policy uncertainties.
Key Takeaway:
Traders should remain cautious amid elevated Treasury yields and broad selling pressure. Focus on high relative volume stocks showing resilience like Alphabet for potential swing longs, while avoiding broad market exposure until yields stabilize. Watch key support levels closely and consider tight stops given the bearish momentum and heightened volatility.
Watchlist
Continuation: IREN (S1: 8.5, S2: 8.7, S3: 8.8, R1: 9.0, R2: 9.2, R3: 9.5)
Anticipation: NVDA (S1: 131, S2: 130.5, S3: 130, R1: 132.5, R2: 133, R3: 134)
