THE CHART ABOVE SHOWS THE RELATTION BETWEEN US MAJOR INDICES AND THE YIELD ON THE BENCHMARK 10y TREASURY NOTE
I ALWAYS SAY LOOK FOR PATTERN COMPLETION TO KNOW WHEN MAJOR TREND REVERSAL OCCUR, THE PATTERN HERE WHICH I MEAN IS ELLIOTT WAVE COMPLETION
WHEN U LOOK AT THE CHART DID U NOTICE THAT THE CORRECTION IN US STOCK MARKETS HAS BEEN STARTING AS EARLY AS 2022, BEFORE TALKING SERIOUSELY ABOUT HIKE INTERST RATES OR FEARS OF INFLATION, IN LATE OF 2021 THERE WAS A GLOBAL SURVEY ABOUT BIGGEST TAIL RISKS FOR MARKET IN 2022 AND INFLATION FEARS WAS ON THE TOP OF LIST , DESPITE THAT US STOCK MARKETS RALLIED, ALTHOUGH THEY WERE A FROTHY EQUITY MARKET, AS BEFORE US STOCK MARKETS WERE RISING DESPITE COVID FEARS AND EMERGENCE OF NEW VARIANTS
THEREFORE IN UPTREND AND POSITIVE MOOD ANY NEGATIVE NEWS OR CONCERNS ARE IGNORED
FUNDAMENTALS ANALYSIS HAS NO ANSWER FOR SUCH THINGS, AS THERE HAVE NEVER BEEN ANSWERS BEFORE AS TO WHY STOCK MARKETS HAVE REBOUNDED FROM THEIR LOWS, WHETHER IN COVID CRISIS OR 2008 CRASH DESPITE THE DETERIORATION OF FUNDAMENTALS ON A MACROECONOMIC OR MICROECONOMIC
HOWEVER, SINCE PANDAMIC LOW US MAJOR INDICES WERE IN A POSITIVE CORRELATION WITH US10yr YIELD, BUT IN EARLY 2022 AFTER THE US MAJOR INDICES COMPLETED THE FIVE WAVES UP AND CORRECTION HAS BEEN TAKING PLACE, RELATION BETWEEN THEM WERE BIENG STRONGLY AND INVERSALY CORRELATED, THIS CONCIDED WITH THE YIELD ON US 10yr WAS CLOSE TO THE PSYCHOLOGICAL LEVEL AT 2% ,DESPITE THE AMERCAN INDICES WERE RISING BEFORE IN LATE 2018 WITH THE YIELD ON 10yr TREASURY NOTE HIT KEY PSYCHOLOGICAL LEVEL OF 3%
