The S&P (2101) is now approaching its 100 day moving average (2095). But it remains above it unlike the Dow which has been below its comparable level for three days.
The long Treasury continues to get pounded. As you can see, it is now near the lower boundary of its short term downtrend. A technical bounce wouldn’t be surprising; but the trend is lower. The bothersome aspect is coming up with an economic scenario that explains the current divergence in bond and stock prices.
I thought that I would update the oil chart. You can see that it has been trading around the upper boundary of a short term trading range since late May.
The VIX was down fractionally on Friday. As long as it maintains a negative trend, it is a plus for stocks.
The Chinese stock market opens limit down (short):
Bank of International Settlements slams central bank monetary policy (medium and today’s must read):
***overnight, Greece goes ahead with referendum; capital controls imposed; markets in for a rough day.
This Week’s Data
Thoughts on inequality (medium):
International War Against Radical Islam