$S&P 500(.SPX)$ we have to remember that spx is an average of 500 companies. these companies are affected by rising interest rates. mr market is forward looking so when you are looking at the stock chart, you are looking at the future. you are seeing the discounted value of the stocks that people are willing to invest in.
looking at the pnf percent chart for spx, you can see that it has support at the 3600 region. the yellow lines indicate the positions of the gaps.
looking at the candlestick chart, you can see that the gap at 3739 was just covered two days ago 18 Oct. the rsi indicator below, blue line with yellow line average, shows that momentum was lost due to profit taking after a rally. this is also due to$US2Y(US2Y.BOND)$ making new highs yesterday.
looking at the pnf percent chart for us2y, you can see that it is approaching resistance, that is 4.6 to 5% range. if us2y retreats, the spx rally can seize this window to cover the gaps at the yellow lines mentioned above.
bonne journée et à bientôt
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