From the desk of Steve Strazza @Sstrazza and Ian Culley @Ianculley
Back in August, we presented two opposing views of the relationship between stocks and bonds.
The question was, after running into resistance at a key extension level, in which direction would the $SPY/$TLT ratio resolve?
Would stocks break higher relative to bonds, in the direction of the underlying trend?
Or would the ratio roll over in favor of bonds? It would certainly be a logical level for a trend reversal…
Fast forward two months, and we finally have our answer. [Read more…]