Bond Yields Still Hammering Stocks

Stocks retreated from relative highs and the upper bound of our pseudo-megaphone pattern, which has been holding for over a week now. We found support at the lower trend line which formed the lower bound of the pattern. The Kovach OBV is still extremely bearish and the recent jump in bond yields will further entice investors to diversify and sell some of their stock positions. Watch for stocks to hug the lower bound of the megaphone pattern and potentiallly break down further. If so, watch 3694, 3676, and 3658 for support. If stocks get a sudden burst of momentum, we have a bit to go before highs or the upper bound of the pattern, and there are three levels in the way which have proved significant in the past: 3792, 3810 and 3825