It started yesterday. The 10-year note future (TYM14) made a double bottom at around 11am EST, started to rally, and never looked back. It's now jamming into new highs. Should it close at these levels, yields will be their lowest in 2014.
This while the dollar is just ticks away from fresh nearly 3-month highs.
This while the S&P has levitated on thin air four days in a row, unconfirmed by high-yield credit.
This while the VIX gapped higher yesterday by as much as 4.23%.
Today is the New Moon, in Gemini, the sign of the twins. Which will the market be today, the Good Twin or the Evil Twin?
As I typed this, the S&P e-mini future suggested the Evil Twin. It appears that Equityland is getting spooked by Bondland.
Being a fire sign, I happen to love airy Gemini girls, but I doubt earthy Bulls would rejoice in the market's bad side today. In my opinion, the S&P needs to close above 1900.53 or risk yet another failed breakout.
A failed breakout at this juncture could see a pleasant, happy market turn into a Batshit-crazy freakshow.
The set up is perfect: Marketwatch kindly offers Why stock investors should ignore low Treasury yields, the FT informs us that an "Upbeat Wall Street Lifts Global Mood," and Dennis Gartman, the noted trend-follower, just told us "there is no correction coming."
Oh, and regarding the phases of the moon and their effects on the markets, you may enjoy Sheer Lunacy staring at the Heavens, a study presented by The Royal Bank Of Scotland.