As we’ve been noting, there have been a lot of very unhappy bears out there lately, who have been forced to suffere through this trashy, low-volume, short-covering sucker’s rally. No amount of questioning the green shoots has done them any good, as bulls have trampled over them everytime they dare make a stand.
Yesterday was particularly painful, since the day’s gains broke what was starting to be a slide last week. But today’s pain — and in particular soaring interest rates — gives them reason for hope.
If Treasury yields keep moving up, the Fed will have been rendered neutered (or worse) and any hopes of a rebound in housing (let alone credit expansion) will be dashed
Final tally: The Dow ended down 171 points (2.05%), the S&P 500 lost 17.27 (1.90%) and the NASDAQ fell 19.35 (1.11%)
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