The stock market tanked very hard on Thursday as the 10-year treasury yield spiked above 1.50% critical algos trigger level.
Going forward, this pattern will continue, massive selling in the equity market when yield spike above 1.5%. regardless of where the support is, and massive buying when yield drop back below the 1.50% critical level..
The 5-year treasury yield level of 0.75% is also is also very important. Thus, for Friday, watch the 10-years yield key level of 1.50% and the 5-year treasury yield of 0.75%.
Bullish market when yield is below those critical threshold, and bearish stock market when the yields are above those levels, and will not respect support or resistance level.
