Below was a quiz posted on 2/3, which reflected that when a certain tool was at a low, it often suggested stocks would rally in the near future (See 2/3 post here)
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The tool was TNX, the yield on the 10-year note. Below is an update to the above chart, reflecting a breakout in yields.
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The above chart reflects that rates on the 10-year note were hitting lows last fall…so did the 500 index. A positive situation for higher yields took place at (1), as higher lows took place.
If history is a decent guide, the break above falling resistance line (2) should be a plus for stocks.
Tom…A break above resistance drawn from last May & Julys highs should be good for small caps, as this would be a breakout.
At this time the Russell is right at the line, as it has been a few times over the past couple of months.
Thanks for this question and viewership,
Some time ago – did you not denote 841 on the R2K as VERY BULLISH?
What do we look for with us closing in on that?