How Will an Interest Rate Rally Impact Stocks?
February 22, 2021
As yields have risen 115% off the 2020 lows, the S&P is up nearly 65% at the same time. Historic rallies by both assets.
The rally in the 30-year yield has it currently testing its 50% retracement level at (3), which comes into play at 2.14%.
So far the rally in yields looks to be a good sign for stocks. If yields breakout at (3) will that send a continued bullish message to stocks?
How much of a rally in yields will turn into “too much” for stocks?
What yields do at (3) should send a very important message to stocks at bonds!!!
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Originally Posted in Kimble Charting