Yesterday I saw some comments about how bonds yields have come down recently and that is one of the components aiding the stock markets recent bull run. The above chart is the 10yr Treasury. If you could flip this chart upside down, it would be a chart of the SPX.
Here's my concern with this chart and how I'm looking at the SPX. This pattern is not done to the upside in the 10yr. It appears this trend continues well into 2023....where as I am looking for a bottom in the SPX this month or beginning of November. I believe every chart stands on it's own. But its hard to ignore the long standing inverse correlation between bonds and stocks. If this correlation continues into 2023...(I have no information to think I will not) then it is possible this low I'm looking for soon in stocks is just a larger A wave and this wave IV in the SPX and this pattern could drag well into new year.
We will know if the next decline in the SPX is one in which we loose any MACD positive divergence we have had on the daily SPX.
Best to all,
Chris
Here's my concern with this chart and how I'm looking at the SPX. This pattern is not done to the upside in the 10yr. It appears this trend continues well into 2023....where as I am looking for a bottom in the SPX this month or beginning of November. I believe every chart stands on it's own. But its hard to ignore the long standing inverse correlation between bonds and stocks. If this correlation continues into 2023...(I have no information to think I will not) then it is possible this low I'm looking for soon in stocks is just a larger A wave and this wave IV in the SPX and this pattern could drag well into new year.
We will know if the next decline in the SPX is one in which we loose any MACD positive divergence we have had on the daily SPX.
Best to all,
Chris
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