Bifogade filer
Yet another dead cat bounce?
Prenumeration
The Fed minutes released on Thursday, 25 May, triggered a strong rebound on the US stock exchanges. The market now suspects that the central bank´s stiff stance on rate hikes has softened.
HYG was leading the rally in the US stock exchanges. This is a good sign since it is an ETF for junk bonds.
However, the 10-year US Treasury yield has not broken down through the support level of around 2.75 per cent, which is somewhat discomforting. If the 10-year yield does not break below the support, the chances of last week’s rally being a “dead cat bounce” still linger.
We ask ourselves whether there is enough energy left for the S&P 500 index to test Fibonacci 50 around 4 245.
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