Why Treasury yields might be closer to breaking down than breaking out Array ( [cookie] => 7584e7-ae0e4f-6a2286-e059cf-305f08 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_pro [visitor_id] => 591083 [reason] => [method] => ) 1
Trend bullish - Expect this two-day pullback will not break initial support at 4384 before pushing higher to exceed 4458 on its way to 4500 before any real stallout occurs.
It remains difficult to have any conviction that this market might be turning down. Looking at Thursday’s session, the minor weakness held almost exactly where it needed to before stabilizing and attempting to push higher into the close.
The one minor change over the last couple days has been the pickup in correlation from very low levels. In the minor pullbacks in Mid-June and May, there seemed to be sector rotation that balanced the market decline, while this week we’ve seen more evidence of all sectors falling in unison. Additionally, European and Asian indices are witnessing similar selloffs but at a greater magnitude than the US.
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