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May 14, 5:00 pm EST Yesterday we looked at the big technical support level for the Dow — the 200-day moving average. That level held beautifully, and stocks bounced aggressively today. Here’s a look at that chart now ….
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With stocks bouncing after a quick 5% correction, we also have a big technical area of support holding in the interest rate market. As you can see in this next chart, the 10-year yield is holding this big trendline into 2.40%. |
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So, we have a stronger dollar today, strong commodities prices, higher global stocks and higher rates. What’s different today, relative to yesterday? Nothing. We have a market underpinned by better than expected economic data and earnings. And (different than December) we have a Fed that is in a relatively accommodative stand, promising to do nothing to disrupt the trajectory of the economy and stock market. That makes stocks a buy on dips. |