If Bonds Bounce, Equities Can Too

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Our View

Well we got our down day, but that doesn't make me happy. It seems like my 10 Deadly Sins are catching up with the stock market. I'm going to make this easy on you today and keep things short. The markets don't look good, but that doesn't mean a rip isn’t coming.

The bull's back broke yesterday. After a few weeks of holding above 4290 to 4300, they finally ran the sell stops that were building below. That was my key warning from yesterday in Our Lean.

I warned my trading room that: IMPRO: Dboy :(10:05:16 AM) : there is a giant line of sell stops 4290.50 down to 4276.

Within minutes the ES traded down to 4373.75. It was that move that set the tone for the day.