The above three areas of the markets give us the following points.
1.) Equities continue to move higher, although the rate of participation is decreasing.
2.) Bonds have started to sell-off and are at important technical levels. This market segment was probably over-bought over the last few years and is now returning to a price level more in line with the current economic situation. However, this sell-off should provide some fuel to the equity market rally.
3.) The dollar is consolidating after a sell-off. I'll discuss the dollar in more detail in the next post.
