Positive Correlation Between US Bond Yields and S&P500 Suggests Investors Do Not Expect Stagflation

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

<ul>
<li>SPX call to reduce at 4,800 met our 4,600 buy pattern/trend support as did the NDX at 15,300 that sets up a rally sequence. SPX pivot resistance at 4,712/40.</li>
<li>Mid January a fresh retreat is due in late January ahead of a more bullish February cycle on the back of a yield lull and resumption of yield strength.</li>
<li>NDX rally will be used to re short near resistance as tech remains a weak link in the face of rising yields (banks the beneficiary).</li>
</ul>


SPX call to reduce at 4,800 met our 4,600 buy pattern/trend support as did the NDX at 15,300 that sets up a rally sequence. SPX pivot resistance at 4,712/40.
Mid January a fresh retreat is due in late January ahead of a more bullish February cycle on the back of a yield lull and resumption of yield strength.
NDX rally will be used to re short near resistance as tech remains a weak link in the face of rising yields (banks the beneficiary).


S&P 500 INDEX

SPX and NDX Met Buy Target Levels