It bounced off the 50 dma 4 times on the way down... So, it will have to battle it's way up to break it as well. I think it boils down to the earnings and the market's perception of it for the next big move
Unemployment will fall to about 7 percent in the fourth quarter, according to economists at five of the world’s largest banks, creating more confusion among investors about the Federal Reserve’s bond-buying plans.
Bond prices have dropped and market volatility has increased in the last six weeks as investors have struggled to figure out the Fed’s plans for its asset purchases. Prices will fall further during the next 12 months, as a faster-than-forecast decline in unemployment pressures the Fed into ending its program early, said Joseph LaVorgna, Deutsche Bank chief U.S. economist in New York.
One consequence of 7 percent unemployment is that the yield on 10-year Treasury notes will rise to 2.75 percent by year’s end, with a further increase to 3.25 percent by next June, after the Fed winds up purchases by January, LaVorgna said. The yield was 2.48 percent at 4:51 p.m. in New York on July 1, according to Bloomberg Bond Trader prices.
The S&P 500 rose 0.5%, down from 1.2% at its session peak. It closed below its 50-day line, where it has met resistance the past few days.
Market in Correction, raise cash. E's across the board. Keep powder dry. breakouts of leaders today on weak volume. Likely just a dead cat bounce