A monthly chart shows 10-year Treasury yields continue to respect support at 2.00%, confirming the primary up-trend. Expect resistance at 2.50%, but the long-term (multi-year) target is 4.00%, where the 2009 high coincides with a descending trendline from the 31-year secular bear-trend. Rising yields reflect market expectations that the economy is recovering and the Fed will curtail further quantitative easing.
The S&P 500 is headed for a re-test of support at 1600, but recovery above 1650 would signal another advance — testing the upper channel around 1700. Declining 21-day Twiggs Money Flow continues to signal selling pressure.
Breach of support at 1600 would warn of a correction to test the long-term rising trendline at 1500, but that would not alter the healthy primary up-trend.
The VIX is rising, but remains in the green zone, below 20, suggesting a healthy up-trend.