as you can tell from the US Treasuries and JPY, these riskoff assets have been gaining value for some time, gold has been lagging behind but today following a poor NFP print but STRONG Unemployment print.
IMO gold is rallying higher as the probability for a fed hike becomes higher since unemployment is their target measure along with (and not NFP as some will believe).
with all 3 riskoff assets rallying this means there CANNOT be enough liquidity in the market to push risk assets (SPX/NAS100/DJ30) to new highs as well - its all but a 0 sum game - the liquidity to push JPY BONDS and GOLD higher MUST have come from risk assets.
I believe this will be the end of the modest bull run for equities #downwego probably starting next week.
A movement lower in equities at his point is well served - we have many high risk events coming up and i believe people will be getting out of risk and into safety starting next week given 1: fed on the 16th 2. brexit on the 23rd and also BOJ on the 16th (along with a slew of other Central banks also due to declare their ).
Given the above uncertainties/ Risks NOW seems a perfect time for investors to flee to safety and for the SPX to follow suit 5-10% lower in the coming weeks.
As per my previous articles this answers all of the questions, we now have enough uncertainty momentum to push gold UP and stocks down IMO .. the paradoxical bonds/jpy AND stocks higher will come to an end in the coming days with STOCKS selling off for at least 4 weeks.
PLease see the attached articles for more information.