Stocks Still Rearing from Yields

The sudden and continued rise in bond yields have created a problem for Stocks. The S&P has retraced from the upper bound of our pseudo-megaphone pattern. Although we do have support at 3791, we appear to be forming a bear flag, and may break lower. There is a vacuum zone down to 3758, which it appears that the S&P seems to be gearing up to cross. The level 3758 is not only a technical level but it also intersects with the lower bound of our pseudo-megaphone pattern so we should see some some support there. We have a cluster of levels below that at 3749 and 3737, which should provide further support. If there is bull momentum, we should see resistance at 3847, which is about mid way between the upper and lower bounds of our chart pattern.