Yet today, as the S+P 500 was making yet another all time closing high,
on a 5 % jump in the Consumer Price Index
the XLF Financial made up of the largest capital banks in the US,
was reversing sharply, and closing on it's lows today.
Well the US 10 Year Bond, dropped another 4 Basis points to 1.44 %,
and has dropped from 1.75 % High this spring , an 18 % almost crash in yield in a few months
just as the cost of living has been rising sharply in 2021
Banks make big money when rates are rising, not falling.
This is setting up a major divergence in the stock market.
Bank stocks are now falling.
The bond market is telling you there is a "flight to quality"
with big money now pouring into US Treasuries.
Pay attention to this financial divergence.
It is material.
There are dark clouds brewing on the US financial horizon.
Woods Of Connecticut