Day trading pre-market open October 4

Extremely Bearish or Contrarian Bullish

The US 10-year yield is up around 440 bps since March 2020. And as the above chart suggests, just about every move of this size has resulted in some sort of crisis. Given this, markets have held up relatively well. But something has to give. Will it be stocks or treasury yields?

This backdrop has caused CNN's Fear and Greed Index to fall to 'Extreme Fear'. A level not seen since March 2023 and October 2022. But from those two lows, the S&P 500 would finish 7-10% higher just one month later.

Is it time to start plugging in some Warren Buffett quotes about "be fearful when others are greedy and greedy when others are fearful"? Or do bond yields continue to surge until something breaks?

Major US benchmarks take another step down as US 10-year Treasury yields rally to the highest level since 2007, the S&P 500 falls to the key 200-day moving average, the Dow erases its year-to-date gains, US job openings unexpectedly rise amid a surge in demand for workers, CNN Fear & Greed Index hits 'Extreme Fear' and why this pullback might turn into a correction.