Inverted yield curves

Simply put it has been one of the best signals of an upcoming recessions based on recent history. This takes places when the short term yields are higher than the long term yields. Meaning investors are more vary of the longer term prospects of the economy. The inverted yields means as the maturity of the bond increases the yield is decreasing showing the unfavorable market expectations. The 10-year and 2-year curves have been used generally as an indicator in this segment.

The market sentiment after this strong rally has become a little jittery again considering the inflation and labor numbers coming in. Morgan Stanley has stated that the stocks are now in the "Death zone" alluding to the high altitude air which has less oxygen as a result individuals need to be extra cautious.