The one thing I keep thinking about yesterday's stock market action is that it was really a mirror image of Tuesday's selling. It does have the advantage of taking place near multi-year highs though. Yesterday also had the familiar weak dollar - strong commodities - strong stocks - lower yield pattern that has been the hallmark of the bull market since Spring '03.
To really gain my confidence I would prefer seeing the market prove it can move up with yields. Might not matter for the short run with all the open gaps in the bond chart below current yields but eventually it seems like a necessity for higher stock prices.
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