SPY We are BLESSED with a Bullish Week

3 thg 10, 2022

The 2 year treasury bill yield has a well known high negative correlation with index prices as it represents the risk of short term capital allocations. When 2 year yields drop, stocks rally and same in the inverse. This is also true with the DXY, which represents the dollars value against other currencies and assets. When the DXY drops, the other asset tied in a pair quite literally increases in value(in dollars) as its denominator has just shrunk.

All this to say, we have confirmation from 2 year t-bills and from the DXY to take a long back to local highs.

:)