US10Y & SP500 | CRISIS ANALYSIS - BANKING SYSTEM MELTDOWN*From oct 2018 to dec 2019 there is very strong divergence of -42% between falling US10Y and rising S&P 500.(On every falling US10Y there is average of 60% correlation with S&P500).
*Corona virus Activated the convergence process and covered almost +70% to set the overall correlation at +34%.
*There is remaining 30-40% convergence left to align US10Y and S&P500.(Expecting alignment on lower trend channel).
US10Y trade ideas
Tough times ahead for Stock Markets?This chart looks at US 10 Year Bond Yield over last 30 years.
The yield was in a downtrend and in a falling channel for 30 years until now where it broke out above the channel. This may signal a near term top on Equity markets.
Purely educational not to be taken as advice