NEW YORK (The Street) -- Each of the five major averages that comprise the stock market closed Tuesday below their key weekly moving averages, but the key "sell in May and go away" signal is based upon weekly closes.
Nonetheless, stocks sank on Cinco de Mayo as U.S. Treasury yields rose, which is a warning. Here's why.
Let's start with the daily chart for the U.S. 30-Year Treasury Bond and the interest-rate sensitive markets.
Courtesy of MetaStock Xenith
The yield on the 30-year bond had been below its 200-day simple moving average since March 13, 2014 when the average was 3.694%. This week, the yield moved back above its 200-day simple moving average now at 2.865%. A higher bond yield is a drag on equity valuations, which enhances the possibility that stock market highs will be confirmed at Friday's closes.