US markets are clearly in risk seeking mode today, with strong rally in stocks an treasury yields. Resumption of US-China trade talk is an important positive factor. Most notably, DOW is trading up over 450pts at the time of writing. 30-year yield is also up 0.112 at 2.068, solidly above 2% handle.
DOW’s strong break of 55 day EMA should confirm that pull back from 27398.68 has completed at 2.5440.39. Also, strong support from 55 week EMA is another sign of bullishness. Further rise is now in favor for the near term and break of 27398.68 high could be seen. Though, considering bearish divergence condition in daily MACD, DOW could feel heavy again after making new historical high.
30-year yield is now back above 2% after today’s rebound. Though, break of 2.123 resistance is needed to confirm short term bottoming. Otherwise, near term outlook remain bearish and another fall is expected for a new low. But break of 2.123 could bring stronger rebound back to 55 day EMA (now at 2.300).