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All three major market averages trade lower on Monday with investors already looking forward to the Fed decision.
The Nasdaq Composite (COMP.IND) is -0.9%, the S&P 500 (SP500) is -0.8%, and the Dow (DJI) is -0.8%.
The S&P broke below the 3,900 support level on Friday.
“Over the last three years, the level on the SPX with the most amount of volume traded has been 3,900,” BTIG’s Jonathan Krinsky wrote. “It closed below that on Friday for the first time since July 18th which, in our view, opens the door down to the June lows (3,640).”
“While it likely won’t be a straight line, we have still yet to see any panic in the VIX (VIX) curve and monthly RSI has yet to get below 46 in this cycle,” he said. “1987 is the only ‘bear market’ in the last 90 years that didn’t hit sub 42 Monthly RSI. There are areas working, but they are mainly in the defensive low-vol arena. These areas typically outperform until the bear market hits its final low.”
Additionally, there are no major economic indicators on the calendar on Monday.
Rates have moved higher. The 10-year Treasury yield (US10Y) has rose 5 basis points to 3.50% and the 2-year yield (US2Y) moved up 10 basis points to 3.96%.
From a sector vantagepoint, all S&P sectors are lower, with Energy down the most as crude slumps below $83 per barrel.
Among active stocks, shares of Take-Two Interactive have slid after it was reported that a hacker had released authentic, pre-release footage of the company’s highly anticipated Grand Theft Auto VI video game.
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Image and article originally from seekingalpha.com. Read the original article here.