Rates Push Higher Globally While Equities Sit On Key Technical Support

Takeaways

Key Level / Condition

The S&P 500 is currently testing gap support near 6,834, created on December 19. This level coincides closely with the 50-day moving average near 6,800. If this area fails to hold, the index would likely begin to probe lower gap zones near 6,775 and potentially 6,725, which would place prices back into mid-December ranges. Holding this support would help stabilize price action, but it would not, on its own, resolve broader volatility pressures.

Volatility / Flow Signal

Implied volatility continues to reprice higher following a period of heavy volatility selling into year-end. The VIX remains relatively low near 15, while