As we noted in our earlier letter today’s $48Bn 3yr US Govt Note auction is going to be followed by the US Govt 10Y and 30Y auctions tomorrow and Thursday with a whopping supply of $38Bn and $26Bn respectively coming online. Kind of interesting at the time of posting the equities were holding in and we posited this question, “We wonder how long the US Equity markets can ignore the back up in yields here.”
No sooner than our posting it seems the higher yields combined with the absolute drudging in the metals, led to equity weakness. Let’s look at the Nasdaq chart first where the 10700 level seems like a massive area of Bull support and if broken will lead to a break back into our rectangle base formation once again:
If Amazon is any indication well then the buyers better show up quick because this formation doesn’t look that great and is more akin to a major topper. The trend line that is displayed is off of the March lows and is very important for the Bulls to maintain for now, else bea…
