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March 28, 2006
Stocks and Rates Rise Together
But wait! The stock market appears to like rising interest rates. The 5-year Note Yield ($FVX) bottomed in September and the S&P 500 Equal Weight Index (RSP) bottomed in October. Both have been rising since January and both are trading above their November highs. What the….? This means that the initial reaction to hawkish comments from the Fed would likely be down, but the larger uptrend could still pull trump. Key support at 170 holds the key. It just keeps on rising.
Posted by Arthur B. Hill at March 28, 2006 05:06 AM