Lions and friends…
The US 10yr Yield has dropped 8 basis points over the last 2 days. With that, according to the MMRI risk in the market, although still very high, has dropped.
As we know, without direct intervention here by the Fed, (either buying more debt to suppress bond yields, weakening the dollar, or outright buying stocks), risk in this market can potentially skyrocket! Which will undoubtedly put a lot of pressure on the stock market.
With that, I still believe that since this is a Presidential Selection Cycle, the illusion of the market will most likely be maintained (be propped up) as the world economy flatlines.
GM
Anything they try to do is very temporary at this point. They have simply hammered DXY down today. Looks like Charles Schwab may the next Lehman moment here, You can see the volatility past few weeks. And in case your asking..that is not bullish.
I think the same in that “the illusion will be maintained.”