In a bearish (engulfing) week for the SPY, it appears that there is more downside to follow, which I would expect. Thing is, it appears that the SG 10Y G-Bonds broke down a supporting trendline, giving advance heads up that it would be a bullish rally in the weeks to come.
Previous dotted arrow line is now sold red as the SPY (blue line) moved up for a last...
A rather uncanny comparison, but some correlation observed... the SG Government Bonds are the next level "risk-free" instrument (perhaps not to all, but it is clearly one of the more robust).
Taking the SG10Y and overlay with SPY, some correlated trends are observed...
The yellow lines are the trend lines for the SG10Y, and break outs or break downs are...
Remember this?
Well broken out.
MACD supported, and candlestick suggestive of continuation.
Equity market pull back imminent.
Those buying into SG bonds (a local hot topic these days), you know where this is going...
