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Bond yields and stocks hold support to keep reflation trade intact

Impressive move higher today in both Equities and also TY YIELDS, the latter gaining a full 10 bps from 2.28 to 2.38 by the close.  Gold erased most of its early gains after yields turned up aggressively and FAILED to breakout above 1260 as a result of this Yield ramp.  The USD index has gotten up to near important initial resistance /EURUSD near support, which suggests possible slowing/Minor Reversal next wk-Breadth came in around Even, slightly more decliners than Advancing issues, while nearly Double the volume on the Downside-Utilities backed off hard into today's close as yields moved higher also, while Financials trimmed earlier losses and Energy fell--Overall a VERY impressive snapback for Equities again, making it 4 of 5 days this week where S&P rallies 12-16 handles off early lows-  Heading into next week, still difficult to make much of this as being any sort of ongoing pullback for stocks, more like a corrective consolidation phase which needs to move higher, given the overlapping waves (S&P moving above recent 2351 last week helped to improve the structure)   2336-40 will still define the downside as key support while S&P will need to eclipse 2375 to have confidence of an upside breakout- Overall, we finish this week with a bullish bias, based more on the fact that indices had several chances to selloff and failed on each occasion.  Financials seem to have held where they needed to on initial weakness and still haven't broken down sufficiently and likely WON"T if yields hold up above 2.30% while the yield curve 2s/10s is also at support and should bounce -  Materials should be put into focus with the Dollar showing signs of being at resistance while XLB has made new multi-week closing highs and on the verge of a larger breakout-   Overall, USDJPY, TNX will definitely still be in focus next week, while the S&P pattern can't be taken lightly but has improved a bit given the consolidation