Excessive pessimism leads to optimism - reflecting confused uncertainty, in a market which is just maintaining a rangebound S&P pattern. The recession fears are a bit ridiculous; and the assessments constantly so worried about 'when' (how about 'if') it occurs; miss that it's been with us. Of course that's not to say the inversion curve isn't important; but it also reflects the global picture; which has us move lower but remain relatively firmer; and it is not even entirely reflective of US economic prospects (likely opposite in fact if we get a China deal and things sort-out more modestly over time). Of course there's a negative alternative; but while that is more cataclysmic; that is not what this market is necessarily facing as the rolling chaos persists.  

As long as it seems possible, without any 'real' indication of which argument is truly valid regarding extended S&P technical levels versus 'credit bubbles' that of course pose an historic risk -if it busts. But in a money-shifting sort of way, that has many believing this would be an enormous boon to equities.  

I suspect both perspectives are valid; however one better add to the mix the awful performance of Industrial Material and heavy industrial stocks; that tell one that 'trade' (or lack of a deal) combined with sluggish global demand, in fact matters a lot when one adds 'technical analysis', liquidity and/or credit market moves, along with valuation fundamentals, to what is a witch's brew.

Remember that history is against 'fighting the Fed' (which Trump was prone to do again with today's tweets comparing rates in Europe versus the USA), and history is against ignoring the recession prospects based on low rates (ie: the inverted yield curve is becoming such an exceptionally extreme risk, that when the bubble does burst the ramifications could be dramatic). 

Conventional wisdom believes (and to a degree reasonably) that a collapse in bonds would shift torrents of money into stocks. Perhaps so; even initially and later on. However in-between I would be concerned about liquidation of some Corporates that nobody seems to recall; often funding the epidemic of buybacks that was used to hold-up the equity market. Just a thought on this.  

It all stirs the pot and the none of it - including the fact Treasuries yield lower returns that average dividend-focused stocks now - (much less than the best dividend payers like our 'investor favorite of the year' AT&T) and you have a stirred mix that is frying anyone trying to react to the 'news du jour' tactics of chasing strength or fading dips.  

In sum: after all was said-and-done, Wednesday was generally up which I hoped it would be (fairly frequent) as the market consolidated after getting a bit of a pummeling previously. All this remains within a rangebound context. And it was helped by Oil, which I also believe is part of what protects the US from any devastating decline (and is a topic generally under-appreciated as the U.S. increasingly is in the catbird's seat with regard to global energy).    

Keep in mind that what negative yields reveal in Europe is an economic and central banking paradigm that no longer works well. President Trump chides the Fed for not replicating a failing 'race to the bottom' approach; and is not thinking it through. The recession risk is merely in name only; as I've noted it is an evolution dating about a year and a half now since my first mention.  

Now I did say that about the time it 'formally' arrives, it should be just about over. By that I meant rates would be so low that the economy would revive, and earnings expectations could start to become more favorable. However this can take longer to evolve; and hence impact markets.  

Do know that Sec'y. Mnuchin has said the U.S. doesn't plan to intervene as regards the Dollar; and also that Treasury is giving serious consideration to the so-called ultra long-term bonds (why anyone would be interested other than Governments trying to stretch things really-far-out given money printing efforts and impossible debt levels, is hard to fathom).