The oversold S&P is off 30 points from its morning high. It’s imperative it has a strong close today.
We do think a test of the February low of 2532. 69 is a done deal, that is another 5.4 percent from current levels.
What concerns us most is that today’s 10-year yield Treasury yield is higher than where it was when the S&P500 peaked on September 21. To be fair, the move in the 10-year to 3.25 percent triggered this stock market slide.
he markets may be signaling the global economy is sacked with too much debt. Very rare do Treasury yields rise during a 10 percent stock market correction.
Here are key levels to watch: