Technical Assessment: Neutral in the Intermediate-Term

Summary

Following Tuesday’s explosive move higher for the stock market, prices for the major indices paused for the balance of last week. But the end result was impressive considering the size of Tuesday’s moonshot and how far the market has come since late October. Stocks are working off short-term overbought conditions in time rather than price, which is bullish. The most-important part of the week was the breakdown in the five-, 10-, and 30-year Treasury yields after they traced out small tops.