The S&P 500 has paired its daily decline to just 8 points or 0.2% after falling more than 83 points at the lows.
I have repeatedly highlighted how quarter-end flows are skewing the signals. Yields fell sharply yesterday and today with 10-years now below 3%. That’s positive for stocks and it’s confirmed by falling expectations of Fed hikes in the Fed funds market and 5-year breakevens (5 year forward 5 years are down to 2.1%).
Finally, I think the price action in the oil market is helping with crude down $3 today and gasoline cracks coming down sharply.