As for the bond market…on the technical side of things…the yield on the U.S. 10-year Treasury note is sitting at a critical level on its longer-term chart.
Some Cracks are Showing Up in the Small Cap Rally
Jan 3, 2024
We now have an extremely important support level for one particular ETF to keep a VERY close eye on. If (repeat, IF) it is broken in any meaningful way, it will signal that we have a lot more downside potential for this decline in the stock market before it bottoms.
All too often, the first sharp decline is merely a warning signal of something worse down the road when it comes to the markets. (Warren Buffett didn't sell half his AAPL position because he thought it was going higher.)
The issues we have been warning about are all coming to a head. This will make a move to new all-time highs in the stock market difficult to achieve this year.
The earnings from Apple and Amazon have not saved the day (like they did last quarter)….If the major averages see any more downside follow-through, it will confirm a change in trend for the stock market.