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10-year YIELD takes out recent high

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The first technical event I feel traders should be alert to is that the 10-year YIELD (TNX.X) is taking out a recent YIELD high and this could have stocks active to the upside. Keep an eye on things here and monitor throughout the session. On April 18th, the TNX.X reached a YIELD high of 5.343% and has traded as high as 5.343% this morning.

Equity futures show gains

Equity futures are showing some upside gains this morning. Currently, S&P 500 futures are higher by 7.5 points, NASDAQ futures are higher by 42 points and Dow futures are up 30 points. Fair value on the S&P500 for today is $5.06. That price will not change during the day. Buy programs are set for buying at $6.76 and set for selling at $3.46.

Equity funds attract cash, but technology remains flat

U.S. Equity funds attracted $5.6 billion from April 24th to April 26th according to Trim Tabs. Trim Tabs said technology funds had inflows of $89 million during the period, but inflows are flat month to date, compared to inflows of $7.4 billion for all U.S. equities. Bond funds and hybrid funds (balanced funds) lost $432 million during the latest 3-day period.

What this might tell us

From time to time I like to note what is taking place in the mutual fund industry with inflows and outflows. A trader might take some of the above information and tie it to what I've been pointing out from time to time recently. It looks like technology stocks still aren't drawing large sums of capital to them yet, but money is coming out of bonds. Look for some "large cap value" funds to be drawing the bulk of capital from the latest statistics from trim tabs and even some small-cap funds. Perhaps this explains some of the "stalling" we've seen in recent days in the NASDAQ-100 and the QQQs.

Jeff Bailey
Senior Market Technician

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