By Jeff Pierce

This is probably one of the best looking charts out there demonstrating true strength. File under Risk On.

tsx

SPY relative to aggregate bond market. This is a bullish chart when the equity markets are rising. It would appear we’re in a transition from Risk On to Risk Off, but it hasn’t quite made the transition yet.

spx.agg

 

Bonds relative to SPY. When/if this is in the process of finding a bottom, then it will be Risk Off as traders flock to bonds.

tlt.spx

Discretionary vs Staples / High End vs Necessity Risk / Risk On vs Risk Off. If this is a double top this it most certainly will be Risk On.

xly.xlp

 

 

 

 

 

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