S&P index gives up gains. Down on the day.

The S&P index has given up its gains and traded in negative territory. At session highs the price change was up 18.92 points. The low price just reached -14.78 points on a day.

At session lows, the price tested a swing level going back to March and last week near 5056.92. Support buyers came in near that level on the first test. If the level can hold support, a rotation back to the upside would be anticipated.

On the top side, the falling 100-hour moving average (blue line in the chart above) is near the 50% midpoint of the corrective move to the downside near 5108. Going forward, getting back above that moving average and midpoint level is needed to give the buyers more confidence.

On the downside breaking below the swing level would have traders targeting the 50-hour moving average (black moving average line) at 5035.12. Moving below that increases the bearish bias with a retest of the low price from last Friday as the next target.

The NASDAQ index is holding onto gains of a around 29 points or 0.18%. The Russell 2000 is lower by -12.46 points or -0.62%. Yields are higher today which is putting a damper on the small-cap sector.

• 2-year yield 4.941%, +3.6 basis points
• 5-year yield 4.672%, +5.1 basis points
• 10 year 4.658%, +6.0 basis points
• 30 year 4.788%, +6.5 basis points.

At 1 PM ET, the U.S. Treasury will auction off five-year notes. Yesterday the treasury auctioned off a record amount of two-year notes with the demand (not stellar but good).

This article was written by Greg Michalowski at www.forexlive.com.