TEN-YEAR YIELD TESTS 50-DAY AVERAGE -- SMALL CAPS STABILIZE -- BITCOIN UNDER PRESSURE
TEN-YEAR TREASURY YIELD TESTS 50-DAY AVERAGE... The decline in bond yields over the last month has helped boost stock prices, and technology stocks in particular. Chart 1, however, shows the 10-Year Treasury Yield testing its 50-day moving average. The major trend of bond yields remains higher with expectations for higher yields in the months to come. It remains to be seen if the 50-day line is enough to support the TNX.
SMALL CAPS STABILIZE... While large cap stock indexes have been setting new highs, small cap stocks have been lagging behind. Chart 2 shows the Russell 2000 iShares (IWM) trading well below their March peak. But they're trading back above their 50-day average today and are testing the top of a small trading range near 226. A close above that level would put the IWM at the highest level in a month and would be a positive sign.
BITCOIN UNDER PRESSURE... Chart 3 shows Bitcoin having fallen below its 50-day moving average to turn its short-term trend lower. It's now struggling to hold onto potential chart support near 50,400. If that doesn't hold, the next level of potential chart support is near its late February low just above 43,000 (flat trendline).
