Stock/Bond Ratio Sending Topping Signals

Share This Article
October 11, 2018 7:16am NYSE:SPY

moutain-peak-top

From Chris Kimble: This chart compares the relative strength of Stocks to bonds by creating the S&P 500/10-Year yield ratio (SPX/TNX) on a monthly basis, since the mid-1970’s.


The stock/bond ratio’s trend has been up for the past 34-years, following a resistance breakout in the early 1980’s. Nothing of late has changed this long-term bullish trend. Currently, the long-term trend is experiencing a major support test right now at (1).

Over the past 3-years, the ratio has traded sideways, where it could be creating a “head & shoulders topping pattern.” Softness in the ratio of late has it testing 34-year rising support and potential neckline support at the same time at (1).

At this time support is support!!! If fails to hold it would be suggesting a long-term trend change is in play.

What the ratio does with support will send very a very important message to Stocks, Bonds, and asset allocation models!

The SPDR S&P 500 ETF Trust (SPY) fell $3.35 (-1.20%) in premarket trading Thursday. Year-to-date, SPY has gained 4.70%.

SPY currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 152 ETFs in the Large Cap Blend ETFs category.


This article is brought to you courtesy of Kimble Charting Solutions.


Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular


From Our Partners


Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories