STOCKS RESUME SELLING AFTER FED RELIEF RALLY -- BOND YIELDS NEAR TEST OF OVERHEAD RESISTANCE

STOCK SELLING RESUMES... Stocks are being sold heavily today and are totally reversing yesterday's Fed relief rally.   Stocks have given back all of Wednesday's price gains and look poised to fall further.   Chart 1 shows the Dow Industrials falling sharply today after meeting resistance at their blue 50-day line.   The other two major indexes are experiencing bigger percentage losses.   Chart 2 shows the S&P 500 losing nearly -3.9%.   The Nasdaq is the day's biggest percentage loser with a -5% loss.   A big jump in bond yields is taking a bigger toll on technology stocks and the Nasdaq market.

All eleven sectors are in the red with the biggest losses in consumer discretionary, technology, communication services, materials. and industrials.   More defensive stocks are showing smaller losses.   They include utilities, staples, real estate, and healthcare.  Bond yields are nearing a test of their 2018 high.

BOND YIELD NEARS TEST OF 2018 HIGH... The yield on the 10-year Treasury bond has risen well above 3.00% and is trading at the highest level in more than three years.   The weekly bars in Chart 4 show the TNX heading toward a test of its late 2018 peak near 3.25%.  That will be the next major test of the uptrend in bond yields.