We’re seeing spectacular moves in the bond market this morning with the 10Y, which reached our 3.99 target yesterday, plunging as low as 3.79% and the 2s10s reaching -10 bps.
Equities are taking it on the chin, with ES nearing our next downside target.
continued for members…
At this point, the red channel offers decent support at the SMA100. The Fib pattern we inserted yesterday still offers a better floor for ES at 5323.50. If it should fall below that level, the SMA200 is way down at 5135.
VIX has topped its Apr highs on triple negative divergence.
The USD is suffering under the plunge in yields.
And, oil and gas are also getting hit pretty hard.
The key, though, is the bond market. With the 2s10s back above cycle highs and posing an existential threat to the bullish equity market.
