The delta between the 10Y rates and corporate bonds shrunk also to 0.8% (from 1.2% just a few days ago.) The consequence being that equities now look comparatively more attractive, their overvaluation level having been raised to more than $4300.
In such conditions, I believe that the current uptrend will hold and that we are not far from a bounce.
The pullback in oil prices also helps to lower inflation expectations, but
on the other hand, copper is under accumulation here.
The NHNL indicator displays some weakness. Past markets sell-offs have started like that, but I expect something more positive this time simply because rates are falling fast.
Conclusions:
We are not far from a bounce that could take us at least to the 200MA and if breached, we could go to the $4300 resistance level.
