S&P 500 Breaks Down Support, Will Fed s Powell Address Bond Sell Off? 2021-02-23 12:00:00 Justin McQueen, Analyst
All Eyes on Fed Chair Powell
S&P 500 Short Term Weakness, Tech Stocks Weighed by Rising Rates
US indices have extended on losses with the S&P 500 finally posting a convincing break below the area of support I had mentioned last week (3880-3900), while there was enough follow through to take the index below the 20DMA. Reminder, equity markets are also going through a seasonally weak period and thus much of this downside appears to be a short-term tactical play. Keep in mind, that another US fiscal stimulus package is in the works with the House Budget Committee yesterday advancing the $1.9trillion aid bill as expected with a House vote due later week. As such, the short-term weakness at play is unlikely to alter the longer-term trajectory in US equities.