OPENING LOOK

The chart of the 10 Year Bond is telling quite a story. The story is straight up since a 4.3% rate in the middle of January. Its funny how back when the rate was 4.3% all the chatter was about inverted yield curves and why that was bad for equities. Now, with higher rates, the chatter is that equities have to compete with higher rates which will yield lower p/e ratios and lower equity prices. This chatter I believe to be true and is currently putting a damper on equity prices. The markets are oversold and they have not been able to rally from the oversold levels because of the continuing rise in rates.

The open looks lackluster as market internals show losers ahead of gainer by 1,900 issues. It is interesting that the tech sector is the onlyone with a bid as the SOX index is up .5% and KLAC up another beaner. SNDK is higher on the SPX add and the oils are continuing there southerly journey down by about 1%.

The SPY Pivot Point today is the 128.9 area, and I would look to sell any rallies to that level. Multiple support exists in the 128 area resistance under the 130 levels.