Stocks don’t like it when these lines are moving to the upper right pic.twitter.com/TgKEngjdLI
— J.C. Parets (@allstarcharts) June 14, 2022
Today’s Chart of the Day was shared by JC Parets (@allstarcharts). The chart shows the US 10-year yield (top), and the US Dollar Index (bottom). We highlighted this chart about a month ago, noting that both we’re testing multi-year resistance levels. After an initial pause, both are resolving higher. The 10-year yield just broke out to its highest level in over a decade (2011), while the Dollar Index is breaking out to its highest level in two decades (2002). As JC points out, Stocks generally don’t like when these two are moving higher, especially at the same time. They’ve been moving higher all year, but now they’re breaking out of multi-year bases. Are these two wrecking balls just getting started?