As the Dow tumbles back into the red for 2014 and the Russell firmly into correction territory, all eyes are focused on the 'rotational support' for the S&P 500... and it appears to be faltering quickly. As BofA notes, a break below the S&P's 50-day moving average is key... and we just did. What is just as worrisome is the break of the all-supportive USDJPY one-year-trend to 2-month lows..
Quite a week...
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and longer-term...
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Via BofAML,
The bearish argument in US 5yr yields is under significant threat. The renewed weakness in the Russell 2000 and weakness in the S&P500 (the 50d at 1868 is KEY) say that Treasuries should continue to rally. NOW, in 5s, the trouble for bears starts on a break of 1.535% (the Apr-14 low). This would result in the first push below the 200d since May of last year and expose KEY RESISTANCE AT 1.480% (the Mar-14 low) . Below here completely invalidates the bearish argument and exposes the long-term pivot and Oct-30 low at 1.224%/1.248%.
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As USDJPY breaks a key trendline...
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