Yesterday, even as Treasury yields rose, US stocks held a bid. In hindsight that was a tell as today a fall in yields and oil has inspired fresh bids in stocks, led by mega-cap tech.
The Nasdaq Composite is up 0.8% and at the best levels since October 12. It’s the eighth straight day of gains in the index but it will take another 1% rally to get above the October high.
Given the resistance just above and overbought conditions, I don’t think now is the time to chase this rally but you can’t rule out a FOMO driven squeeze.