SPX and TLT, Which Will Correct?
1. First Warning Sign:
a)Volatility in the markets increasing.
b)Bonds starting to increase as funds leave the
markets, selling into retail
-Previous resistance on TLT was broke
c)The SPX and TLT typically move opposite to each other
-More on that later
2. Result:
a)Funds pull their money out of the markets leaving retail holding the bag at the top
b)Bonds increase further to new highs and current resistance levels
3. Outcome:
a)Remember is the first part where bonds and the markets usually move opposite to each other? In this section, bonds have remained high. This divergence means one of these charts is wrong and expect a correction accordingly.
b)Gold is past all time highs, Silver is lagging behind gold but closed July strong and bullish. Crypto also closed July bullish
c)Stocks have since had historic rallies. Some are near or past all time highs.
d)Feds have increased their balance sheet substantially and will continue to do so.
4. What's Next?:
a)I see two probably options
b)The first being; Feds will continue to support the economy causing a melt up in which investors will have no choice but to partake in. This could lead to an even bigger crash down the road.
c)The second; The Feds will no longer support the market in which TLT will likely break this resistance and continue to make higher highers and the market will make lower lows.
a)Volatility in the markets increasing.
b)Bonds starting to increase as funds leave the
markets, selling into retail
-Previous resistance on TLT was broke
c)The SPX and TLT typically move opposite to each other
-More on that later
2. Result:
a)Funds pull their money out of the markets leaving retail holding the bag at the top
b)Bonds increase further to new highs and current resistance levels
3. Outcome:
a)Remember is the first part where bonds and the markets usually move opposite to each other? In this section, bonds have remained high. This divergence means one of these charts is wrong and expect a correction accordingly.
b)Gold is past all time highs, Silver is lagging behind gold but closed July strong and bullish. Crypto also closed July bullish
c)Stocks have since had historic rallies. Some are near or past all time highs.
d)Feds have increased their balance sheet substantially and will continue to do so.
4. What's Next?:
a)I see two probably options
b)The first being; Feds will continue to support the economy causing a melt up in which investors will have no choice but to partake in. This could lead to an even bigger crash down the road.
c)The second; The Feds will no longer support the market in which TLT will likely break this resistance and continue to make higher highers and the market will make lower lows.
3Bull
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