Fear of yields

Just as Thursday stocks didn‘t have to close on a strong note, neither they had to stage a late in the day comeback Friday. It‘s quite telling they did – does though breadth improvement, or at least defence of high ground confirm that?

Or it‘s actually good given where the 10y yield moved (again to 5%) - is that level scary enough given Wednesday FOMC? Why didn‘t it force the same level selling as earlier in the week? Could it be that the rate raising path presented in the dot plot is still reassuring even as market yields push higher?

I would say so – no panic or meaningful tremor in risk taking occured later, and gold with silver aren‘t seeing massive bid through inflation fears. Industrials have also stabilized, and so did Russell 2000 on the daily chart.

There are other signs including within tech in semis… meaning responsible traders and investors should be on the lookout for deteriorating S&P 500 breadth next.