SPY / TLT Spread Widens
This is an emerging pattern that bears some scrutiny.
It would be easy to dismiss the “A” chart divergence as a product of August volatility but it appears there's something more fundamental going on when the rally of the past 3 weeks is doesn't cause the spread to constrict…in fact, it's expanding.
The dramatic collapse of the equity curve relative to the R Squared line in August ushered in the divergence and one preliminary conclusion is that TLT may be significantly overbought at these levels and or/ SPY is oversold.
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Posted-In: SPY TLTMarkets Trading Ideas ETFs
