The leading index of the US economy, the S&P 500, is correcting downwards, being under pressure from the upward dynamics in the bond market, and is now trading at 4083.5.
The publication period for corporate reports ends, and its results rather disappointed investors. Among the companies that presented their data at the end of last week, the main competitor of Tesla Inc., the American electric car manufacturer Lucid Group Inc. is worth noting. The issuer increased quarterly revenue to 57.68M dollars, which exceeds 26.39M dollars, received in the previous quarter, and 313K dollars in 2021. Earnings per share narrowly missed the positive zone, stopping at –0.05 dollars, which is much better than the loss of –0.64 dollars a quarter earlier. Positive dynamics develop due to the growing demand for the luxury model of the Lucid Air electric car. The company's customers have already reserved more than 30K cars, which will bring the company revenue of about 2.9B dollars.
Serious pressure on risky assets is exerted by the situation in the domestic bond market. For example, the popular 10-year Treasury reached an all-time fall 2018 all-time high of 3.142%, rising from 2.950% in a week, while 20-year bonds are trading at a yield of 3.4606%, which is higher than the 3.2214% shown at the beginning of the month. Only annual bonds did not grow over the past week. Its yield is 2.106%.
The index quotes are traded in a global downward channel, falling towards the support line. Technical indicators hold a global sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram is trading in the sell zone, forming down bars.
Resistance levels: 4280, 4590 | Support levels: 4000, 3800