S&P 500 Breaks Below "Key" Technical Level

As the Dow tumbles back into the red for 2014 and the Russell firmly into correction territory, all eyes are focused on the 'rotational support' for the S&P 500... and it appears to be faltering quickly. As BofA notes, a break below the S&P's 50-day moving average is key... and we just did. What is just as worrisome is the break of the all-supportive USDJPY one-year-trend to 2-month lows..

 

Quite a week...

 

and longer-term...

 

Via BofAML,

The bearish argument in US 5yr yields is under significant threat. The renewed weakness in the Russell 2000 and weakness in the S&P500 (the 50d at 1868 is KEY) say that Treasuries should continue to rally. NOW, in 5s, the trouble for bears starts on a break of 1.535% (the Apr-14 low). This would result in the first push below the 200d since May of last year and expose KEY RESISTANCE AT 1.480% (the Mar-14 low) . Below here completely invalidates the bearish argument and exposes the long-term pivot and Oct-30 low at 1.224%/1.248%.

 

 

As USDJPY breaks a key trendline...

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