Interest-Driven Bounce

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There’s an argument to be made, even by me, of a hearty bounce in equities, based on nothing more than this one chart:

slopechart SPX FR DGS

Here we see how rapidly the S&P has dropped in relationship to interest rates. We just about tagging the midline of this long-term channel. A bounce back toward the neckline would imply (i) higher S&P, (ii) lower interest rates, or (iii) both.

slopechart SPX FR DGS