The major market indexes appear to be wobbling a bit at their highs. Both the NASDAQ Composite and S&P 500 Indexes gave up on early rallies back above their 10-day moving averages on Friday as volume increased vs. the prior day. This is occurring as we see weakness in some areas of the market while others remain more resilient. Whether the market action is indicative of developing overall market weakness or rotation is not necessarily clear cut, however.
The only way to stay in sync, regardless of the action on the surface of the market, is to focus on the individual stock set-ups. But some of these are showing a tendency to shift and change very quickly. Stocks may still find headwinds in the fact that interest rates continue to rise, as the 10-year Treasury Yield ended the week at 1.345%, a large relative increase from its 0.398% low of last March.
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