Equity Markets Pull Back Following Early Strength
Buyers stepped into equities and out of Treasuries in reaction to the better than expected payroll data. However, traders quickly took on the view that the payroll data reduces the chance of the Fed lowering rates any time soon, and that was a good reason to take profits.
The late-morning RSI readings from the CQG Custom QuoteBoard using 15-minute bars for the equity derivative products are indicating neutral readings for the e-mini S&P 500 (EPH7, the e-mini NASDAQ 100 (ENQH7), and the Dow (DJI). The RSI readings for the DJ Euro STOXX 50 (DSXH7) are more bullish.
The Q.NYSEVolRatio is flashing a reading of 58 % up-volume, which is indicating a two-way market, while the Q.NASDAQVolRatio reading is a neutral 49.9 % up-volume, which is also indicating a two-way market.
The MACD and the RSI reading for the CLEJ7, Crude Oil for April traded on Globex, is indicating a short-term down trend.
The RSI for Gold (GCJ7) and the MACD action is indicating a short-term sideways trend.
Yields are up in the Treasury market today due to the stronger than expected job growth.
The EUR/USD pair is trading in a short-term down trend based on the MACD and the RSI reading.
The chart of the S&P 500 and the NYSE volume ratio on a 15-minute basis shows the market opened higher, but the volume ratio immediately started trending lower, which was a sign of selling pressure.
The NASDAQ Composite index and the NASDAQ volume ratio readings show how the market opened above yesterday’s high, but the volume ratio readings began to move down. Sellers came in to take advantage of the up open.