Bonds, yes Bonds...(updated 08-19)

As previous bonds performance and its relationship with main equities indices is a guide, we should keep an eye on what Bonds have been doing last days since they can be sending us a message about short term and mid term direction for stocks. We believe the current divergence may lead stocks down for a retracement since many other important factors also support that idea (will post more about this shortly).


SPX- 10 year T Note comparison

Long term view and background (previously posted on 05-30-2009 at Ui Dezine's Trading Diary Blog)



Mied term view:


Close up view:



Updated 08-19 Finally TNX made a lower low