Into mid-day, we've seen 2 attempts by TY YIELDS to try to rally and the 2nd one is ongoing with yields now back ABOVE February lows, well off their lows and nearly positive on the day, while 2 and 5yr yields are positive- Equities seem to be following suit to what's happening in yields and makes this particularly important- For now, S&P got to within 5 points of targets, but still early by about 2-3 trading days- but S&P Cash and June futures have good support at 2040-5 while Sept S&P has support at 2032-5 and I expect that this likely should be over by early next week. TY YIELDS, USDJPY and also S&P are all close to lining up with Demark BUYS on daily charts - S&P will form completed TD BUY Setup by next Tuesday and should provide a LOW to this equity move which drives prices back up to highs into July. Most sectors well off early lows, and still seeing most of the strength into Utilities and Telecom, and Staples, while Energy and Industrials and Financials are down the most- But Financials curbing losses and now only down 0.40%. Reasons for low have to do with Demark signals coinciding with signs of near-term fear on the rise, VIX stretched outside upper Bollinger, while VIX futures contango showed Spot VIX well over next couple months- Would expect next couple trading days to show a very elevated TRIN reading coinciding with lows, and also something to watch for. Overall, one could sell into this afternoon's gains, and use any further pullback to lows into Tomorrow into early next week to cover shorts, as technically we seem close to being there
Equities have pulled back to just above support, and can't rule out another 2-3 days of weakness, but risk/reward for shorts technically should be growing poor by tomorrow as S&P gets down towards the lower edge of the Bollinger- If my thinking is right than Yields should be bottoming and the stabilization should help Financials to find a bottom and the ability to rally up off the lows should be a good thing for both Equities and USDJPY next week- Daily chart of JUNE futures above
2 yr yields have also gotten down to key support and the GREEN 9 on the daily chart shows a TD BUY SETUP which was successful at picking lows in early May on the 2 yr yield chart along in FEB, almost to the day, while sells happened in March, April and late May, all like clockwork- yet again, this is offering clues that the Bond rally has happened a bit too quickly and in this case, 2, 5, 10, and 30 yr yields should be nearing support to think yields turn back HIGHER, regardless of the Economic news, for reasons of just having gotten too stretched.