Bullard is killing the markets!
After opening lower, freefall began. Earlier today, Governor of St. Louis Federal bank James Bullard said, "inflation was stronger than anticipated, and it would take the Fed several meetings to figure out how to pare back stimulus." This comment was enough to increase the market fear after recent doubts about the future of inflation. The US 10-year bond Yields raised back to 1.49%, from an earlier low of 1.46%, and it pushed the US dollar Index to recover back above 92.00 level and trade 0.55% higher at 90.40 on April 13. VIX, the Chicago Board Options Exchange's CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on the S&P 500 index, rose above 20.60.
In the stock markets, the main European indexes lost between 1.3% and 1.8%. On Wallstreet, the Dow Jones Industrial Average fell 4889 points, or 1.43%, to 33,332. The S&P 500 fell 46 points, or 1.1%, to 4,177, while the Nasdaq Composite dropped 115 points, or 0.82%, to 14,045.
Technical review
SP500 changed the direction to the clear downtrend. Previously support and currently Key resistance sitting at 4,220 (50 HMA). Closing under second support at 4,167 will open the doors for third support at 4.150 and deeper levels.
Same as SP500, Dow Jones is also trading in a clear downtrend. RSI at 30 and while price moves clearly under main MA lines and OBV trend line and Parabolic SAR dots, confirming that technically everything is ready to see much lower digits right after this level. 33,130 is the third support and next target.
ND100 or Nasdaq is a bit different. Technical indicators have very mixed signals. However, since the price is lowering even if it is above pivot point at 14,080, trading under the OBV trend line and Parabolic SAR dots, signaling a possible change in the trend line, especially breaching under the crucial level 14,030.
