US 10Y - US 2Y vs S&P 500
On January 30 - 2024 I made a post calling for a major correction in the S&P 500 index once the US 10Y - US 2Y yield pushed above the zero line (You can see that post by clicking here). After the US 10Y - US 2Y yield had been inverted since July 2022 this inversion finally came to an end in September 2024 indicating that a major correction in the S&P 500 should be expected in the near future.
This indicator is of cause not a timing tool, but a clear indication that the S&P 500 is ready to start building a top. In the current case it looks as the a top has been build from November 2024 to February 2025 and a major correction should unfold during the coming years.
The first major downside target to be looking for is seen near 4,855, while a continuation lower to 4,056 would be very likely.
Once we get down there I will review the possibilities of maybe even lower targets.
No comments:
Post a Comment