The Gilmo Report

May 16, 2018

May 16, 2018

The upside extension we were seeing in many leading stocks coming into the weekend finally ran into some logical selling yesterday. The catalyst for the market decline was allegedly higher interest rates, as the 10-year Treasury Note yield set a four-year high at 3.082% In addition, the Two-Year Treasury Note yield pushed up to 2.58%, its highest close since July 2008.

Interest rate fears sent the NASDAQ Composite Index gapping to the downside yesterday on higher volume. Today, the index recovered more than half of the prior gap-down decline on slightly lighter volume. Note that the index was already stalling and churning on Monday as it closed lower than its gap-up open on lighter volume.

 

GR051618-$COMPQ

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