A quick look at equity technicals as they just hit inbox AND are largely focused on rates. Said another way, when even stock jockeys are able to spin the move higher in rates as a good thing, it is cause for pause and so, I thought I’d pass along.
This one Swiss bank formerly with a Boston, MA affiliation remains largely POSITIVE of risk, talking of S&P and ‘bullish triangles’ and continuation patters leading to this stronger tone being maintained. But then, there’s RATES at the center of it all, to whit
In late December we published our Key Themes for 2022. Normalising monetary policy is seen likely to be a key driver this year resulting in our view in higher Bond and Real Yields and further and more broad-based USD strength. We stay positive Developed Equities for now but we expect choppier markets and lower returns.
Chart of the Day: 10yr US Bond Yields have risen sharply at the start of the year and we remain of the view a large base is in the process of forming. Key support stays seen at 1.695/1.705% a sustained move above which is needed to confirm to open the door to a sustained rise in yields in 2022. We would then see support initially at 1.775% ahead of 1.96/2.00% and then 2.16/2.18%.
It would seem this visual I’ve got here with freshly drawn TLINE (in the sand) is going to need a facelift, soon
But then, I get the sense we’ve all grown up having watched this cartoon before
I’m going to dig up a new protractor and different crayon for investing.com charts and in the meanwhile (HERE) for the rest of the (TECH)story …