With treasury bond yield spiking, inflation spiking and dollar collapsing as international capital continues to stampede out of the US dollar, which can easily trigger market meltdown, the Plunge Protection Team is busy at work as they continue to buy the stock market, pushing it up, especially ahead of the long weekend.
Whether or not selling can overwhelm buying as capital continues to flee the US dollar asset, only time will tell. The key threshold for the 10-year treasury yield is around 3%. A spike above 3% is likely to trigger massive algorithm sell programs as investment strategies, caught on the wrong side, is forced to unwind their losing trades.
On Wednesday the 10-year treasury bond yield spiked to a high of 2.928
Both the Dow and the S&P 500 remains below their respective key 50-DMA resistance, further rally towards those price level is certain to encounter heavy selling.
Next resistance for NQ is 6750
10-year treasury bond yield has broken above and then retested its downtrend line, setting up a massive spikes in yield. Chart below is from Double Line
