The market has bounced and is pushing higher
As rates pulled back last week, money has moved back into equities, including the the small caps
However, as the earnings expectations continue to weaken, as of now, equities are correctly priced.
For equities to be moving higher without being overvalued, we would need the 10Y rates to break the 3.4% support line and eventually earnings expectations to push higher.
Conclusions:
Follow the 10Y rates.
