Wall Street ends down on soaring yields

• The DJIA had its worst day since September 2017.
• US yields curve widens, as short-term yields rose less than longer-term ones.

Wall Street gave back a good bunch of its latest gains, with equities undermined by Treasury yields rising to multi-year highs. The DJIA lost 177 points to close at 26,439.48, its worst day since last September. The S&P shed 19 points, to 2,853.53, while the Nasdaq Composite closed the day at 7,466.51 down for the day 0.52%. The 10-year note  yield peaked for the day at 2.74%, ending it at 2.70%, well above Friday's 2.66%, while the yield for the 30-year bond settled at 2.94%. Shorter-term bond yields posted a more moderated advance, helping to widen the yield curve.

 The Dow closed near its daily low, but above Friday's one, and technical readings in the daily chart suggest that the decline could continue this Tuesday, although an interim top should not be taken for granted, as the index has been multiple times in this situation over the last few years. In the mentioned chart, technical indicators retreated sharply from extreme overbought levels, but the RSI remains above 70 while moving averages maintain their sharp bullish slopes far below the current level. In the 4 hours chart, the risk also leaned toward the downside, as the index is battling around a bullish 20 SMA, while technical indicators have extended their sharp declines, now nearing their mid-lines. The index has an immediate support at 26,401 Friday's low, with a break below it favoring a steeper slide for the upcoming sessions.