Today, the stock market performed better because the bond market performed better. The 10-year US Treasury bond yield remained below 4.25%, which was last year's peak (chart). A few days ago it rose slightly above that rate but didn't follow through to the upside. The same can be said for the 10-year TIPS yield, which backed off from 2.00%.
Breakouts above these resistance levels would undoubtedly unnerve the stock market, especially technology stocks, and particularly the MegaCap-8. The good news is that the Citigroup Economic Surprise Index (CESI) may be peaking (chart).
