Bond yields started this rout but even with Treasuries reversing somewhat, the pain continues. US 30-years are back to 2.93% from a high of 2.99% and US 2-years are down to 2.67% from 2.73% but it hasn't mattered to stocks.
The Nasdaq is carving out a new low, down 2.0%. Importantly, it's now broken the 61.8% retracement of the March rebound and the April low. It's also in the process of carving out an outside day.
Earnings are clearly a concern here as no one wants to be holding the next NFLX. Yesterday afternoon, TSLA reported a big beat and is still only up 2.7% and trading below where it was at the start of the week.
The calendar is lighter today with Snap as the tech headliner. For me, I'll be watching for Forestar (housing) and Whirlpool (I mistakenly thought they were scheduled to report yesterday). Both will have important macro views. But we heard good macro views today from steel and aluminum companies and it was no help.
It's all about rates right now and the market doesn't like the idea of three 50 bps hikes in a row and a 3% Fed funds target priced in for next February.
As for the chart above, I'm waiting for NZD/USD to confirm it. So far, it's holding in there. That's not much of a liferaft for the bulls but it's something.