andre_007

Waiting for the worst...

Short
SP:SPX   S&P 500 Index
In the chart we have the SPX versus the US10Y (US 10 Year Government Bonds Yeld Rate, in the blue line).
We are at a peak moment.

In principle, the rate in US10Y is inverse, that is, when it goes down, more people are buying — more people leave the stock market and buy government bonds.

The correlation with SPX is high in periods of extreme volatility , as shown in the circles.

Frighteningly, the US10Y is close to the same levels as March/2018 and October/2018.
If it drops like it did before, will we see a strong correction in global markets?

Analyzing the US10Y alone:


The US10Y has broken up a long bearish channel .
The RSI ( Relative Strength Index ) indicates an extremely stretched value, signaling a possible reversal to the downside.
On the weekly chart it is in a resistance test region, similar to the periods mentioned.

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