Index is still well below the highs
The NASDAQ index gave up all its gains. The high level was up 129.90 points or 0.9%. Those gains were eroded with the index reaching a low of -6.9 points or -0.05%. The price has since rebounded and currently trades up 16 points, but is still well below the highs for the day.
Looking at the hourly chart, the price low from September 20 reached 14530.07. The low yesterday reached 14539.88. The low today reached just below that level at 14539.76. Moving below the September 20 swing low is the next hurdle followed by the 38.2% retracement of the move up from the May 12 low which cuts across at 14483.00. The August 19 low at 14423.16 is another downside target on further selling momentum.
From the high, the price has fallen -5.67% to the September 20 low. That is a relatively healthy corrective move, but it’s not 10% either.
US yields, a catalyst for the recent declines, are actually lower today with the 10 year down -1.9 basis points, the 30 year down -1.6 basis points, and the 2 year yield down -1.0 basis points. Perhaps the inability have the NASDAQ index to hold gains is indicative of the expectations for rates. The high yield for the 10 year reached up to 1.77%. That was back at the end of March. One can argue that the concerns about inflation are more elevated now than they were back then (although growth expectations were probably higher).