Caution need with SPX500!!
This is one chart worth watching . I overlayed SPX on JNK bonds. JNK bonds are breaking down. If you look at the overlay of weekly chart, SPX is making all time highs every few days and Junk bonds did not move much. Now chikou is below price and daily chart is bearish. Macd has been diverging for a while. The divergence is going on forever and one or the other will catch up. Not saying that you should cherry pick the top and short it right away but be cautious. If you are long, trail stops . We are long due for correction.
Shanghai composite is showing some signs too and yield curve on far end is kind of flattening. VIX has been pinned down like no tomorrow . Another divergence worth noting is in USDJPY and Nikkei. You can see it by overlaying chart. FTSE is also breaking down.
December FOMC meeting is a big one. Market already knows that there is going to be a hike but its all about forward guidance from here. Keep an eye on 2y and 10y yields and gold. There will be plenty of opportunities when the time comes.
Thanks for the read.
Shanghai composite is showing some signs too and yield curve on far end is kind of flattening. VIX has been pinned down like no tomorrow . Another divergence worth noting is in USDJPY and Nikkei. You can see it by overlaying chart. FTSE is also breaking down.
December FOMC meeting is a big one. Market already knows that there is going to be a hike but its all about forward guidance from here. Keep an eye on 2y and 10y yields and gold. There will be plenty of opportunities when the time comes.
Thanks for the read.
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