S&P 500 dips into five-month lows at $4,230 as US Treasuries hit record high

• US equities turned bearish once more, driven lower as risk appetite wanes.
• US Treasury yields hit a 17-year high as investors head for the safe haven hills.
• Tuesday’s declines see markets fully entering bear market territory.

The Standard & Poor’s (S&P) 500 equity index closed down 1.37% for Tuesday, dipping below $4,230.00 and extending recent losses as investors continue to get pushed out out of the risk appetite trough.

The S&P is seeing its lowest prices in five months, and the Dow Jones Industrial Average (DJIA) had its worst trading day since August, slipping 430 points to close down 1.3% at $33,002.38.

The NASDAQ Composite Index was the biggest major index loser of the US trading session, falling 1.87% to close at $13,059.47, shedding over 248 points on the day.

US economic data continues to beat expectations, with US jobs figures hinting at continued underlying strength in the US economy, raising concerns that the Federal Reserve (Fed) may have to raise interest rates even further looking forward.

The 10-year US Treasury hit a yield of 4.8% on Tuesday, with the 30-year Treasury hitting 4.925%. Both Treasuries are at their highest yields since 2007.

S&P 500 technical outlook

The S&P 500 is set to crash into the 200-day Simple Moving Average (SMA) currently parked just beneath Tuesday’s low bids, and the 34-day Exponential Moving Average (EMA) has turned bearish from $4,400, trapping any bullish rebounds under technical resistance.

The S&P is off nearly 6.5% from the last swing high near $4,520 and remains down 8.16% from the year’s high at $4,607.

A bearish continuation will leave the way towards $4,000 clear for the S&P 500, while a bullish rebound will need to reclaim territory all the way up to $4,500 before a re-established bullish trend can be baked into the charts.

S&P 500 daily chart

S&P 500 technical levels