Are Stocks Set To Rocket Higher?
This week’s video looks at the narrative for stocks breaking out and pushing higher, as well as the impact of slowing credit growth on asset class behavior.
Like the NYSE Composite, the ratio of the S&P 500 (NYSEARCA:SPY) to a diversified basket of bonds (NYSEARCA:AGG) was testing a key area Monday.
If the ratio can push above the downward-sloping blue trendline, it would be a positive development for stocks relative to bonds.
Conversely, if the ratio fails to push/hold above the blue line, it increases the odds that Monday’s stock breakout may be followed by relatively tepid price action.
This article is brought to you courtesy of Chris Ciovacco from Ciovacco Capital.