I often think of the market as a mosaic of information and data points. I wish there was one thing that served as the magic bullet. That if you solved for it, you would have the answer to all the market’s secrets. If only it was that easy. Right now, I think that there are three charts that matter and will determine if the current choppy trading is simply a consolidation or a top. The first is the 10-year yield. The massive spike in yields has been the main issue that has caused the uptrend since March to take a rest, especially in the much-loved story stocks. I have written about this a few times recently and I bring it up again because I think it is that important. The yield is now trading into a big zone of resistance. Right now, bullish investors just want to see the pace of the advance slow. If the climb simply slows down, I think that the equity market will stabilize and begin to move higher, as it has played out in the
Thanks Dan.