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).

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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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