Are We Setting Up for an Opex Bounce?

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Our View

Only the optimist thinks that the ES is going up right now and that's coming from someone that loves to buy the dips. You don't read MrTopStep for economics or what stock to buy, you read it because of how the newsletter paints a picture.

Is the picture always perfect? I think not.

Does the newsletter give you a feel for the overall price action? I think it does and so do a lot of other people that follow me.

The one thing that I don't talk about is the bonds. They are on the lows for the year, while the 10-year yield is within spitting distance of its 52-week high from October (around when the S&P hit its 52-week low). This high for the yields — at 4.335% — is a multi-year high. In fact, it’s the highest level since Nov. 2007.

This has added pressure on borrowing costs, which 'rattles' investors and pushes stocks lower. Elsewhere, look at how poorly the Dow Jones Transports have been trading: