Can The Move Up Be Sustained?
A strong move up across the board Monday. And today?
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Now For The Hangover?
Heavy drinking of the Kool-Aid yesterday - everything up from crypto to tech to defense. Now, markets have been bumping along the lows of the A-B-C correction from the July highs, and when such reversals happen they can be violent, so a day like yesterday should not come as surprise. The question is whether we get follow up for the rest of the week, starting today. Equity and crypto futures are down at the time of writing (around 7am Eastern) but not dramatically so. We should look to the close to see how yesterday's up move was digested.
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US 10-Year Yield
We should look for whether new local highs are made by the 10-year. If it stays at these levels or declines, we may expect equities to rise. If it moves up, and in particular if it breaks 5% to the upside, we should be concerned about equities.