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Equities were battered along with bonds last week.
Trouble in the bond market spilled over into equities as market participants reacted to a “sloppy” treasury auction. Spiking yields have both bond and equity investors on edge. From a technical perspective, bonds remain in a downtrend.
Equities closed the week essentially at the 50 day moving average. A close below the 50 day moving average in the S&P 500 during the coming week could easily spark additional selling as participants paying attention to technicals may see a close below the 50 day MA as bearish in the short to medium term.
Stimulus is still working it’s way towards approval and passage could affect pricing in both equities and bonds.
Best
Cory Haupt
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