Equities remain near session lows after giving back roughly 1/3 of the gains in the last three days- Most of the weakness is occurring in Consumer stocks, with Financials & Industrials giving back roughly 0.60-0.85% and only Utilities and energy Positive. the US Dollar is down vs Yen, Canadian $, Euro while losing more ground vs the Emerging mkt currencies, with Emerging markets outperforming along with Commodities.
S&P hourly Futures chart shows prices stalling right near 2080 which marked a minor downtrend line from mid-April with prices now giving back roughly 1/3 of the progress in the last couple days. Overall this is the first of a couple important areas of support, the next being 2049-51 area, and difficult based on the extent of today's action to completely rule out another few days of selloff. A complete retracement of the last few days of gains seems unlikely, but also can't be dismissed, given the recent history of false breakouts and breakdowns in either direction, but likely should lead to a chance to buy dips given recent history, along with the positive weekly momentum, bearish sentiment and degree of sector rotation we've seen in recent days.
One major warning not to trust the rally from yesterday concerned the degree to which Treasuries paid little or no attention, with no selloff in yield which might normally accompany an equity rally of late- While WTI Crude has lost virtually all of its positive correlation to Equities over the last couple weeks, Dollar/Yen and Treasury yields certainly haven't. Thus, when a sharp rally in Equities happens with Bund yields in a Death spiral down and Treasury yields also hovering above key support, it's worth paying attention.
Yields sit at key support, with evidence of both 10 and 30yr yields trying to break down. German bund yields meanwhile likely have a date with 7-8 bps in the next couple days