Chart of the Day - Thursday, May 16, 2024

🏆 Today’s Chart of the Day was shared by Matt Weller (@MWellerFX).

• Matt points out that risk assets had a mini reversal today after the 10-year yield found support at 4.3%.

• 4.3% will be a significant test for the 10-year yield and the broader market. It was resistance in Feb/March before breaking out during the inflation scare in April.

• A breakdown would be very bullish for stocks and other risk assets like gold and crypto. On the other hand, a rebound could put pressure on these areas.

The takeaway: The 10-year yield is testing a potential inflection point around 4.3%. A breakdown would be very bullish for risk assets, while a rebound would be bearish