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Equity Roundup: Paring Early Losses

US STOCKS
Still weaker -- equity indexes are bouncing off midmorning session lows heading into midday as short end rates rebound trade higher (yld curves steepening, 2s10s well off early Monday inversion around -9.531 to +10.414 currently).
  • Does not appear to be a specific headline driver for early reversals -- but continued move off curve inversion, a recession flag (perhaps ironically after Deutsche Bank analysts forecasted recession period in late 2023/early 2024, out late Tue), amid continued hawkish Fed rhetoric ahead this afternoon's March FOMC minutes release may be a factor.
  • Or maybe just technical? S&P eminis currently trading -54 (-1.19%) at 4466.25 -- after ESM2 traded down to 4456.25 -- just above key support of 4452.75: 50-day EMA. Breach opens next key support of 4320.25 (Low Mar 17).
  • On the flipside, initial bull trigger is at 4633.44, 76.4% of the Jan 4 - Feb 24 downleg and just above the Mar 29 high. A break would confirm a resumption of the past month's uptrend.
  • Meanwhile, Dow Industrials currently trade -205.14 (-0.59%) at 34435.94, Nasdaq -347.5 (-2.4%) at 13856.7.
  • SPX leading/lagging sectors: Utilities sector stronger for second day running +1.67% lead by electricity, hybrid energy providers; Energy sector next up +1.09% lead by oil/gas and equipment mfgs..
  • Laggers: Consumer Discretionary sector taking a beating (-3.12%) second day running of weaker levels for autos, consumer durables/services and retailing names.

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