Ten year treasury yields have broken May and October lows, says Mark Newton, Chief Technician at Greywolf Equities, and the correlation to stocks is pretty strong. He expects stocks to follow the bonds. Newton also pointed out that this is a midterm election year and that historically, June is the worst performing month, ranking last over the past 50 years. Volume continues to remain low with little trading taking place even as the month winds down. Small cap stocks and the consumer discretionary sector have been leading the weakness in equity stocks even as Michael Kors beat earnings estimates.

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