As anticipated, equity markets finally reacted to the persistent’s rise in U.S. Treasury yields. Yesterday’s push toward all-time highs appears to have lost momentum for the time being.
Despite the setback, the S&P Navigator Strategy has issued a long signal, pointing to a potential rebound in today’s session. Should the index recover, the 5960 level may present an attractive point to reduce exposure or initiate short positions.
Technically, the S&P Indicator has turned negative on the daily chart, while the weekly average is trending sharply lower. The daily signal hints at a short-term bounce, whereas the deteriorating weekly trend suggests that a more pronounced correction could be underway. Confirmation would come with the first decisive red candle on the chart.
Key takeaway: Those lacking economic insight should not toy with tariffs.