Credit Spread MUT to TLT vs SPX
The ratio (credit spread) of High yield bond MUT and treasury TLT has a reliable correlation with SPX over the years.
Since 2014 (in red box) that relationship has been bifurcated. Including in short term since last several weeks where SPX has gone up but Credit spread has not.
This divergence needs to be corrected soon. Either by SPX going down or the ratio going up and joining the party.
Thanks Bikoo,
Nice observation…
Eyeballing your chart, SPX leads.