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The yield curve is flat. The 10-year note is currently yielding as much as the one-month treasury. This is the bond market’s way of forecasting a potential recession down the road. Was Friday the day the stock market woke up and started to discount the same? It is too early to say. One down day doesn’t make a trend.
Small caps are looking ominous with that high-volume reversal off their 200-day moving average on Friday. Many tech momentum stocks are quite extended and also vulnerable to quick 5-15% pullbacks.
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