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Market Updates

Rally lacks conviction

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The markets tried to go out with a bang, but it appears to be a whimper. The Dow had set a new high for the day, but is now just sitting at the 9480 level. The rally ended right as the bond markets closed. We'll see what the last half hour holds.

10-year Treasury Note Index - 60-minute interval

Bond selling in the last hour of trading pushed to yield on the 10-year note near the daily high at 47.99 (4.799%). This close did put yields above our downtrend line we had been closely monitoring. If bonds can gap up on the open Monday, we could continue to see some buying. If we continue to see some strength into the close, I'll be a little less nervous about holding a position over the weekend, but only a small one.

Jeff Canavan
Assistant Analyst

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