The stock market followed a similar pattern again Tuesday as the early selling was well absorbed and the major averages closed higher. The Nasdaq 100 got a boost from the sharp gain in Apple (AAPL) after Carl Icahn revealed he had established a large holding.
The positive market gains, however, were accompanied by negative market internals as the declining stocks led the advancing ones by a 1.3 to 1 margin. Also, more stocks made new 52-week lows than made new 52-week highs.
Stocks investors paid little attention to Tuesday's rise in rates, but bond holders should pay attention. The technical deterioration in three of the largest bond ETFs indicates they are vulnerable to another sharp drop in prices, which may mean more pain for bond holders.
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