Stocks to Bonds Ratio: Price Reversal Warns Bulls

stocks to bonds ratio investing analysis bearish month march year 2021

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!

Note that KimbleCharting is offering a 2 week Free trial to See It Market readers. Just send me an email to services@kimblechartingsolutions.com for details to get set up.

Twitter:  @KimbleCharting

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

Sign up for our FREE newsletter
and receive our best trading ideas and research