Nasdaq corrects lower amid rising US yields

Rising Treasury yields in the US prompted rotation from high growth stocks, such as technology, into value, boosting financial and industrial shares.

Later today, the FOMC minutes from the December Fed meeting are due, likely revealing the latest thinking on the need to curb stubbornly high inflation by tightening policy. The current expectation is for an initial hike in March, which is part of the reason for rising yields.

The one-hour chart now looks somewhat neutral as the index has formed a triangle pattern, usually a continuation pattern. Thus, if the lower line of the triangle is broken to the downside, the bearish momentum will likely continue, targeting 16,150 USD. Another support will surely be at 16,000 USD.

Alternatively, a breakout above the upper line of the triangle could send the Nasdaq toward 16,300 USD (the red horizontal line). 

Volatility will likely stay elevated if yields continue in their upward trajectory.