The decline in the 10-yr yield is not the only factor at work in the markets, but there is clearly a correlation at work recently, especially with banks. The chart below shows the 10-yr Yield ($TNX) and Regional Bank ETF (KRE) falling from mid May to July. Meanwhile, the Technology SPDR (XLK) advanced sharply during this timeframe.
The 10-yr yield and KRE are testing their rising 200-day SMAs and both have falling channels working. A channel breakout in the 10-yr yield would put a different dynamic at work in the markets and this could be bullish for banks. I would not consider this outright bearish for tech-related ETFs, but such a signal could kick off another rotation within the stock market.
