10-Year Treasury yields are testing support at 1.55 percent. Falling yields suggest that the current stock market rally is likely to fail: money is flowing into bonds — not stocks. Failure of support would strengthen the warning. Recovery above 1.70 percent is less likely but would bolster the stock market rally.
Range bound. Will stay there for a very long time, if there is no q.e. offered by the U.S.Government.
Hi Colin, A longer term view (3-4 yrs) of global markets shows a clear H&S pattern. Also with copper. World markets-ex US have peaked in April 2011. Only the S&P and DOW are still in an uptrend. But how long can these two go when the rest of the world is flat to down?
DJ Global Index could still go either way (support at 220 and resistance at 260) but commodities are diverging — pointing to a global economic down-turn.