Market Rally Legitimate or a Dead Cat Bounce?

Was today’s trading session a legitimate rally or a dead cat bounce? There were certainly some notable catalysts supporting its legitimacy: 1) the CDC announcement to lift mask requirements for anyone fully vaccinated; 2) Fed bankers defiantly jawboning for lower interest rates in the face of “transitory inflation” data evident in producer prices; and 3) the ongoing improvement in the US labor market. Does anyone sense a “but” statement forthcoming in this analysis?

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Capital Markets Technically Speaking: 3-26-2021

SP-500: Bullish reversal is in play and now it needs to overcome resistance @ 3984 to confirm legitimacy. 10-Yr Note Yield: Bullish reversal is indicating a resumption in rising rates. Bitcoin: Selling has ceased and another bullish reversal pattern has formed to establish a higher low on the recent pullback. This translates into continuation of the bullish trend.

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