What this means is that the stock market as represented by the S&P 500 is bullish and continues to climb while the bond market is saying that money is migrating to the safety of bonds and so driving bond yields down and bond prices up. The bond market is saying that today's environment is a "flight to quality" environment and that "risk on" assets are simply too risky. Since the bond market is typically viewed as the "smarter" of the two markets, bond action could be bad news for stocks as we move into May.
The Week Ahead: What to ExpectMajor economic reports come our way this week as follows:
Tuesday: Case/Shiller Home Price Index, consumer confidence, Chicago PMI.
Wednesday: Federal Open Market Committee meeting announcement, April Institute of Supply Management, construction spending and ADP private employment.
Thursday: Weekly jobless claimsFriday: April Non-Farm Payrolls, Unemployment Rate, service sector ISM, factory orders.