The NYSE index is facing a very important price level as momentum and the MACD are at their highest levels in a year. The nine-week rally from the late December lows has the NYSE index facing the October, November and December highs and its 78% retracement this past week.
Just The Facts
Momentum, MACD and the NYSE index look to be rolling over from levels that could send a big-time caution message to the bullish case. Below looks at the yield on the 10-year note (TNX) over the past 25 years
The bullish case for stocks hopes that another rollover isn’t taking place here. If support breaks at (1), look for stocks to decline in price along with yields.