Singapore 10Y yieldShort
Predictive Correlation the SG10Y Bond Yields on S&P500
I have posted about this correlation previously. Perhaps this time it might be clearer to see...
This uncanny correlation between the SG10Y Govt Bond Yields as a leading indicator for the S&P500 was noticed some time ago, and tested since.
As shown, the major turning points were seen in trend changes of the SG10Y GBonds first, before the S&P500 reacted. The vertical time markings show when you would short or long depending on the trend breakouts of the SG10Y GBonds (see lower panel, blue line),
Comcomitantly, comparing what happens from that point, you can see the S&P500 in the upper panel with yellow line.
The lowest panel is the MACD... and this shows the correlated pattern of a (lagging) technical indicator.
Since 2023, there are at least six instances with 100% hit rate.
Now... that brings us to TODAY.
It appears that we are given advance warning of the next couple of months.
For now, there should be a quick pop up to the very recent high followed by a failure of support in the S&P500; and then the expected trends should play out...
This uncanny correlation between the SG10Y Govt Bond Yields as a leading indicator for the S&P500 was noticed some time ago, and tested since.
As shown, the major turning points were seen in trend changes of the SG10Y GBonds first, before the S&P500 reacted. The vertical time markings show when you would short or long depending on the trend breakouts of the SG10Y GBonds (see lower panel, blue line),
Comcomitantly, comparing what happens from that point, you can see the S&P500 in the upper panel with yellow line.
The lowest panel is the MACD... and this shows the correlated pattern of a (lagging) technical indicator.
Since 2023, there are at least six instances with 100% hit rate.
Now... that brings us to TODAY.
It appears that we are given advance warning of the next couple of months.
For now, there should be a quick pop up to the very recent high followed by a failure of support in the S&P500; and then the expected trends should play out...
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.