*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...
The Fed is high likely Going to increase the Interest rate and bond yields i am expecting to rise , it might consolidate for day or tow but this move is coming , No one can stop it
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
US 10 year yield at 2.80%. (Price falling)
Weekly chart
Cup pattern breakout seen at 2.67%.
3% plus possible.
Not a good sign for global equity markets.
