Figure 1 below presents the most important economics lesson you will learn today (or any other day for that matter). Please take whatever time is necessary to memorize this important concept.
Figure 1 – Economics 101 Courtesy of NotesFromTheRabbitHole
Figure 2 presents highlights 8 different major stock market indexes that (at least for now) have held at support, but which remain very much “in play”.
Figure 2 – Major Market Index hold at support Courtesy of KimbleChartingSolutions
The implication is pretty simple: If these support levels start getting pierced to the downside, it is time to play defense. Until then…..
Figure 3 displays the difference between the 10-year treasury yield and the 2-year treasury yield.
Figure 3 – 10yr minus 2yr treasury yields Courtesy RealInvestmentAdvice.com
While the current trend (i.e., getting closer to 0) appears ominous it is important to remember that the “trouble” typically does not occur until this measure goes negative. But attention should be paid.