You would think that stock market bulls would throw in the towel today as markets turned south. The S&P 500 is riding a five-day winning streak, so there would be no shame in taking some profit or not buying the smallest dip.
But the bulls have stepped in again.
The S&P 500 has mostly erased a 20 point decline and is now nearly flat on the day. The Nasdaq is also near-flat.
What's gotten my attention is the decline in yields at the same time. US 2s are down 6.3 bps to 4.00% today and have stayed low in the latest risk rebound.
That highlights a market that believes it's getting an incredible combination of: Lower inflation, lower rates and solid growth. That's a rare combo and the economy could always tip into recession but right now, that's not the message from markets.
