Stock and Bond Market Levels – This is Big

Jamie Saettele, CMT Scandinavian Capital Markets

In October, I warned of an important behavior change in U.S. stock markets and also identified the bond market low. Major U.S. indices have rallied 10%+ in the last 4 weeks after entering ‘bear market’ territory. So, what now? The DJIA has returned to a major long term parallel and the 10 year U.S. T-yield is a few ticks shy of old lows (charts below). I’ll go out on a limb and say that these markets are testing important barriers. Obviously, macro implications are significant. Good luck!

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DJIA Weekly

10 Yr U.S. T-Yield Weekly

Author

Jamie Saettele, CMT

Scandinavian Capital Markets

Jamie Saettele is Senior Technical Strategist at Scandinavian Capital Markets, a premier broker offering services to institutional clients, fund managers and professional traders around the world.

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