Notice here that the Dow Industrials have been on what is simply a trendline rally along the 200-day moving average. The index dropped down to the 200-day yesterday only to bounce a little in the last hour. It’s hard to imagine that the overall market is going to hold up and if the 200-day breaks down in the next few days, don’t be surprised if MLPs begin to pull back. And that pullback could accelerate once the the companies go ex-distribution in the next week and a half. It will be a long three months until the next payout comes.
Looking back to the 10-year chart, one has to wonder if the bond markets aren’t screaming deflation at the top of their lungs. And by the way, it doesn’t help matters any that even some of the more defensive groups in the stock market are starting to show some signs of weakness. If the yield is destined to fall down to 1 percent, it take all markets down with it.