The sell-off in the S&P500 has not triggered a wider risk-off
US stock markets updated multi-month lows on Thursday, pushing the S&P500 back to December 2020 and the Nasdaq back to November 2020 at one point. On Friday, before active US trading starts, we see the market attempting to form Friday’s profit from the recent sell-off.
In the meantime, it is worth paying attention to several indicators that might point to a long pause in the decline of the markets or even a probable upturn. Perhaps they will also act as a basis for a broader rally.
The yields of the 10-year Treasuries have retreated to levels below 3.4%. Yesterday we saw intense intraday swings with another attempt to break above 3.5%. However, towards the end of trading, when actively managed funds dominated the market, there were active purchases of US government bonds, which pressured the yields back to 3.2%.
