Stocks have out-performed bonds since the 2020 coronavirus crash low.
BUT, this dynamic could change soon!
Today’s chart focuses in on the ratio of stock to bonds (SPX/ZROZ) on a “monthly” basis.
As you can see, the ratio created reversal patterns at overhead trend resistance at each (1) over the past decade).
The ratio is attempting to to create another reversal pattern this month while testing resistance at (2).
A major reversal pattern from this ratio would send a bearish message if dual support at (3) is broken! Stay tuned!
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