This kind of diversion between equities and bonds usually does not end well for equities. The above chart plots S&P500 index vs Vanguard Total Bond Market ETF (NYSEARCA:BND). The divergence starts from Nov 2016 and appears to be peaking out.
Tag Archives: S&P500
S&P500 Technical Analysis – 25Nov2015
S&P500 Technical Analysis
Date:11/25/2015 O=2084.00 H=2092.50 L=2082.25 C=2088.00 V=743,484
RSI Indicator:
Conventional Interpretation: RSI is in neutral territory. (RSI is at 59.39). This indicator issues buy signals when the RSI line dips below the bottom line into the oversold zone; a sell signal is generated when the RSI rises above the top line into the overbought zone.
Additional Analysis: RSI is somewhat overbought (RSI is at 59.39). However, this by itself isn’t a strong enough indication to signal a trade. Look for additional evidence before getting too bearish here.
Continue reading S&P500 Technical Analysis – 25Nov2015
US Markets Review -17July2015
US markets opened on a positive note as the week began amid news that Greece and its international creditors have reached an agreement on a new bailout for the debt-laden country. The US markets maintained strength despite the retail sales falling by 0.3% in June versus expectations of a 0.3% increase. On the US economy front, the Producer price index rose by 0.4% in June following a 0.5% increase in May and expectations of a 0.3% increase. The Industrial production increased by 0.3% in June after edging falling 0.2% in May. The markets ended the week on a positive note owing to the news that the Greek parliament voted to approve the tough austerity measures. Upbeat earnings news from some influential companies also aided the investor sentiment. The initial jobless claims fell to 281,000 versus expectations of a level of 285,000. Nasdaq hit a new high on the back of stellar upmove by Google during this week.