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Rally in bonds should be watched for effect of causing stocks to turn higher

 

Minor gains out of US Futures, and Asia while most of Europe is mixed.   Bonds showing pretty sharp rally along with Equity futures, so this positive correlation continuing.. (as yesterday both declined in tandem).  Dollar making just fractional gains and largely seems to have stalled out.    The key continues to revolve around watching Treasuries for signs of a bond rally beginning, vs selling off again, which has tended to affect equities.   Yields are now down to Wed lows but still holding uptrends from the last couple weeks.. so down to near Make-or-break and thought that any yield gains intra-day and/or yields finishing back at their highs likely coincides with stocks selling off again, with yields knocking on the door of 3%.     For S&P.  prices are only about 16 handles down from levels seen last Thursday. But lots of intra-day volatility and increasing signs of rallies being snuffed out and finishing near their lows of the session the last few days.  Financials in particular broke down to new multi-day lows yesterday.. and NASDAQ has been lower the last four days.   For US indices, Any pullback under 2682 in SPX and under 6740 for NDX and under 7200 on NASDAQ Composite on a close would suggest that a drawdown back lower should now occur-  Above 2731 would be a near-term positive and something which could allow for a final push up to 2754 and over.

Yet breadth and momentum are beginning to wane,  so something needs to happen quickly to prevent a retest.

Early gains in IMMR, BUFF, TTD, HPE, HPQ, CORT, HUN, GNC, CHK, DNR, MIC, SGMO, SLCA, while on downside-  OLED, ACIA, WK, EXAS, ZOES, WING, REI, GIS, INTU, RBS

 

 

S&P-  Near-term range-bound.  And above 2731 is a positive while any pullback UNDER 2682 turns the trend negative..  but largely consolidation at this stage most of this past week and no clear cut direction despite the volatility.

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