Founder & Chief Market Strategist - SAV Markets, SAV Markets

Shyam Devani

Founder & Chief Market Strategist - SAV Markets

Technical Analysis

Following last week’s note titled <a href="https://www.smartkarma.com/insights/us-equities-time-to-get-defensive" target="_blank" data-smartkarma-citation="insights:51332" rel="noopener">US Equities: Time to Get Defensive</a>, we suggested there could be a notable short term rotation from stocks to bonds this month and possibly next.While equities have slipped, the move down does not yet seem to be over.At the same time we now see a setup on the Long Bond future that is telling us a rally lies ahead. Could this be a short term setup that warrants further caution for Equities?

Following last week’s note titled US Equities: Time to Get Defensive, we suggested there could be a notable short term rotation from stocks to bonds this month and possibly next.While equities have slipped, the move down does not yet seem to be over.At the same time we now see a setup on the Long Bond future that is telling us a rally lies ahead. Could this be a short term setup that warrants further caution for Equities?

United States

Legacy Government (Sovereign) Generic Index-key ticker

US 30Y (USGG30YR INDEX)

Bonds Set to Bounce

The setup in the Bond market suggests a short term bounce ahead (in price) which in turn could be a warning sign for further wobbles in equities.

Shyam Devani