Support for 10-year Treasury yields has been at 1.85%, with resistance near 2.25%, said Guy Adami, managing director of stockmonster.com, on CNBC's "Fast Money." Right now, yields are climbing to the upper end of that range and seem likely to move lower.
While the iShares 20+ Year Treasury Bond ETF (TLT) looked impressive the most significant catalyst for the next two months will come on Friday when the non-farm payrolls report for the month of April is released, he added. In the broader market, the iShares Russell 2000 ETF (IWM) and iShares Transportation Average ETF (IYT) have traded very poorly, he said.
With the S&P 500 resting near its 50-day moving average, investors should be on the lookout for a breakout over 2,125 or a breakdown below 2,069, said Steve Grasso, director of institutional sales at Stuart Frankel.
With inflation hovering around 2%, investors may start to anticipate a rate hike from the Federal Reserve sooner than previously expected if Friday's labor report is strong, said Brian Kelly, founder of Brian Kelly Capital.
The strong dollar put a lot of downward pressure on oil prices, said Tim Seymour, managing partner of Triogem Asset Management. However, he sees oil prices rising. Brent crude has support at $55 and could possibly climb to $75 per barrel.