Tuesday, July 12, 2011

Keystone's 2-10 Spread Loses 255

Ten year now at 2.90% with the two year at 0.37%, thus, 290-37=253, now under the critical 255 level Keystone uses to judge bullish banks versus bearish banks.  Thus, further weakness in financials is expected which in turn will add to weakenss in the broad markets.  Markets are changing quickly on news bites so the 2-10 spread requires close watching thru the JPM and C earnings later this week. If the spread can regain 255 and move higher then the market bulls are winning back control, otherwise, they are not.

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