The major US stock indices are trading higher at the open help by stability at financial institutions. The KRE regional banking ETF is trading up by $2.38 or 5.46%. Shares of First Republic are up $3.08 or 25.29%.
A snapshot of the major indices currently shows:
- Dow Industrial Average of 287.61 points or 0.89% at 32532.20
- S&P index up 40.71 points or 1.03% at 3992.27
- NASDAQ index of 114.13 points or 0.98% at 11789.67
- Russell 2000 up 36.41 points or 2.09% at 1781.40
The S&P index is currently experiencing a gap above its 100-day moving average, which stands at 3958.37. The index had previously fallen below this moving average on March 9th. Last Thursday, the index closed marginally above the moving average, only to dip below it again on Friday. During yesterday's trading session, sellers appeared to lean against the 100-day moving average, which was at 3957.05, while the session's high price reached 3956.62, just shy of the moving average level.
As long as the S&P index remains above the 100-day moving average, the technical outlook appears more bullish, with the lower 200-day moving average at 3935.08 acting as a risk level for buyers seeking further upside potential. The next target for the index is to surpass the 4015.55 level, which would indicate continued bullish momentum.
In the US debt market yields are sharply higher as traders adjust to a 25 basis point hike and hedge some of the expectations for lower rates sooner rather than later:
- two year 4.183%, up 25.9 basis points
- five year 3.732%, +16.2 basis points
- 10 year 3.590%, +11.3 basis points
- 30 year 3.79%, +6.7 basis points
