STOCK MARKET AT 18 MONTHS HIGH
At 11:30 am the DOW was up over 100 points to 10933, the S&P was trading at 1178 while the NASDAQ was up 30 points to 2428. All those markets were at 18 months high. About 50 companies which are part of the S&P 500 were trading at 52 weeks high.
At the same time the US BONDS lose ground. The 10 years bonds were trading at 97.875 with a yield of 3.90 In other words, a $1,000 face value 10 years bonds is valued today only at $978.75
So, where are we going from this point.
The stock market is a forward looking mechanism . It tells us that companies will do very well in the next six to nine months, The economy will improve somewhat while the unemployment will stay high.
The stock market will keep going up, and the value of US bonds will go down.