Figure 1 below (Courtesy of NotesFromTheRabbitHole) presents the most important economics lesson you will learn today (or any other day for that matter). Please take whatever time is necessary to memorize this important concept.
Figure 1 – Economics 101 (Courtesy of NotesFromTheRabbitHole)
Figure 2 presents highlights 8 different major stock market indexes that (at least for now) have held at support, but which remain very much “in play”.
Figure 2 – Major Market Index hold at support (Courtesy of KimbleChartingSolutions)
The implication is pretty simple: If these support levels start getting pierced to the downside, it is time to play defense. Until then…..
Figure 3 displays the difference between the 10-year treasury yield and the 2-year treasury yield.
Figure 3 – 10yr minus 2yr treasury yields (Courtesy RealInvestmentAdvice.com)
While the current trend (i.e., getting closer to 0) appears ominous it is important to remember that the “trouble” typically does not occur until this measure goes negative. But attention should be paid.
Jay Kaeppel
Disclaimer: The data presented herein were obtained from various third-party sources. While I believe the data to be reliable, no representation is made as to, and no responsibility, warranty or liability is accepted for the accuracy or completeness of such information. The information, opinions and ideas expressed herein are for informational and educational purposes only and do not constitute and should not be construed as investment advice, an advertisement or offering of investment advisory services, or an offer to sell or a solicitation to buy any security.
