Risk assets remain under pressure, BofAML's MacNeill Curry warns and with equities vulnerable to a deeper correction, a close below 1700 (on the S&P 500) would confirm a near-term top and a correction to 1653 (the 10-month trendline support). This morning's action is very much focused on the 1,700 level with this latest rebound not being seen in Treasury yields which continue to push lower (driven by VIX on POMO excitement). As Curry adds, Treasury yields should continue their downside correction with 2.668% as interim support but sees 2.46% as possible.
A close below 1700 and the S&P corrects to the trendline...
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And sure enough 1700 is the line in the sand today...
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Bonds bid and Stocks bid? POMO On...
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but it seems POMO sent the vol-sellers crazy this morning...
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But bonds continue to slide lower in yield (ignoring this latest ramp in stocks)...
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Charts: BoFAML