Seems as if everyone one on CNBC is perplexed by what happened to the rally today.
Here is what happened. The market opened higher. The S&P traded as high as 1314.07. The five year high was 1315.93 reached the week of 5/25/01 on a spike. Bonds also initially traded higher and then reversed. The high yield on the 10 yr was reached the week of 6/18/04 at 4.88%. When the bonds broke through that ceiling decisively on their way to 4.95% and the S&P at 5 year resistance, you can bet trading models picked that up all over the world and hence program selling began. That doesn't even take into account that the market was ripe for profit taking on weak fundamentals of higher oil prices, and lackluster retail and auto sales.
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