The recovery in tech stocks in the US proved to be weak and short-lived. NASDAQ hit 7036.09 initially but failed to sustain above 7000 handle. It closed down -59.58 pts or -0.85% at 6949.23. Near term direction is still on the way down considering it’s staying comfortably below falling 55 H EMA. Note that it’s now trying to sustain below 61.8% retracement of 6630.67 to 7637.27. Next target will be 6630.67 key structural support.
The deterioration in investor sentiments seem to be finally having an impact in the bond markets too. 10 year yield closed down -0.11 to 2.775 after hitting a 7-week low. Safe haven flow is noted as the correction in equity markets look far from being over. TNX is now sitting on 55 day EMA but we’d see it probably dip further to 38.2% retracement of 2.033 to 2.943 at 2.595 before bottoming.
