Weekly Market Update: Markets Reversing higher?
Yields fell lower this week after last weeks spike, but despite that equities failed to rally. It’s possible the correlation between yields and equities we’ve seen in recent weeks is breaking down but when we dive into the charts we’ll see the 10 year treasury yield still holding key support.
Short Term Outlook:
US 10 YR – TNX:
I think the market wants to see a clean break of momentum, and a loss of the 10 and 20 day moving average in the 10 year yield would in my view signal risk on in markets. I will continue to monitor and update.
S&P 500 Index Futures – ES:
*IF* yields break lower this market may push towards 4000.