Stock Indices Finish Lower for Week
U.S. equity markets finished lower for the week after buyers failed to surface following today’s better than expected U.S. Initial Claims Report. End-of-the-year profit-taking was most likely the catalyst behind the drop in prices.
The March E-mini S&P 500 formed a new main top on the daily chart at 1128.50. Based on the short-term range, the first downside objective is 1108.50 to 1103.75. There could be a technical bounce at this level but a break through it is likely to trigger an acceleration to the downside. The main trend will remain up until the main bottom at 1088.50 is penetrated.
March Treasury Bonds penetrated the last swing bottom at 114’26 but closed off the low. Traders sold off the T-Bonds following the release of the better than expected U.S. Initial Claims Report. Traders felt that the friendly report indicated the Fed will be getting closer to raising interest rates. This market’s ability to regain the old bottom at 114’26 indicates that there may be one more surge to the upside. This will only take place if the last main top at 115’29 is penetrated.
