Rising yields have exacerbated the usual challenges associated with August.
In any case, it is still too early to 'buy the dip.' Next week should provide better window for a low.
As the market drops, the bottom-callers will grow louder.
The primary things to watch for are failed bounces and selloffs on higher volume.
It appears to be a time to be cautious as equities this month seem to fade throughout the day.
August keeps us wary, but in past week, the risk of recession is lower and visibility of lower inflation greater. The market increasingly needs to consider the Fed could cut rates in early 2024.
It's still earnings season, and we do have some significant names reporting this week.
One of the biggest shifts in the market has been a sharp increase in longer-term interest rates.
Plus, the United Auto Workers apply pressure on the legacy automakers with the union's big wage demands in their contract talks.
Let's see how the bond market really can't be too bearish or too sensitive to fears of inflation, and how it can tell us a lot about the stock market -- if you pay attention.