10-year U.S. Treasury rates are down roughly 4% this morning on news Larry Summers withdrew his name from consideration to be the Fed chairman. Summers was viewed as hawkish on rates. Janet Yellen will likely be the next Fed Chairman. She is viewed as dovish on rates.
The risk trade is on. NASDAQ is approaching 4,000 and is at a 13 year high. The Russell 2000 (IWM) is at an all-time high. High relative strength stocks measured by the ETF (PDP) are up roughly 20 to 40 basis points more than the major averages this morning and are at a new high.
The Delta Market Sentiment Indicator (MSI) is bullish and indicates a full allocation to equities.