The Oversold level yesterday was 1331; today’s is 1359. This change has everything to do with the recent strength in equities. Given where SPX futures are currently trading, it looks as if that 1359 level will be breached on today. While I am a fan of buying the dip, this dip might just be a little too shallow to step in here; the SPX might just have to carve out more of a range above 1330/5.
It very may well be the case that equities have enough momentum to overcome the Employment Situation and move higher in the short term. But unless Treasury rates move higher, the equities cannot sustain anything above 1370. Key levels of the 10 Year: 1.67% and 1.70%. The 10 Year Note currently yields 1.564%