Before the Open

The rise in bond yields is finally having a bit of a negative impact on the stock market.  The “next drop” in yields should be important.  If (repeat, IF) it’s a quick/shallow drop, it will very likely create some stronger headwinds for stocks.

The XLV healthcare stock ETF is seeing some cracks in its chart.  So, if it sees much more downside follow-through, it will raise some warning flags on this sector.

The P/E ratio & the P/S ratio HAVE been more expensive in the past...but they've been VERY rare.  Therefore, betting that his market can get to their biggest extremes ever is a dangerous plan.  (Besides, those instances were followed by very bad bear markets, so it’s not something to hope for.)

Tesla (TSLA) reports this Wednesday.  The stock is sitting on a VERY important technical level.  So, whichever way it breaks from this level should be quite important for the stock on a technical basis.

The yen is approaching oversold levels, so it could/should be due for a bounce soon.  If that takes place, it will create some headwinds for the stock market…at least on a short-term basis.