Feldstein, former Chairman of the Council of Econ. Advisors, now a Harvard Professor, said that the FED is way behind the curve in raising rates. He appeared on CNBC's "Squawkbox" show, interviewed by Joe Kernan and Mike Santolli. "Feldstein said that the Fed Funds rate should be 2% above the current level of inflation (almost 2% ex energy), which would put the "correct" or natural levele at 4%. Feldstein also said that long bonds should be yielding about 6%,, and that the current low level of rates & high prices represent a bubble. Feldstein also said that stocks are also about 40% overvalued. A 6% long bond yield would represent a TLT price of approximately $65.
MACD sell signal, rel. strength fading, on balance volume fading, perhaps most bearish. FB stock appears to be completing the right shoulder of a head & shoulders top. Test of 50 day moving average likely (near $99) and possibly 200 day later ($89). Technicals suggest caution.