: The S&P 500 is about 1% below its all-time high set last month, but what worrying Riesner is what he describes as intact and growing divergences on macro and inter-market levels, according to Market Watch. In simpler terms, Riesner is working about the divergence between the S&P 500 and high-yield bonds, 10-year Treasury yields and inflation expectations. Michael Riesner, head equity technical analyst at UBS, in a note to investors presents a number of charts to support his ‘toppish’ warnings. The chart below depicts the divergence between the S&P 500 returns SPX, -0.70% and widely used high-yield exchange-traded fund iShares iBoxx $ High Yield Corporate Bond HYG, -0.37% over the past decade. But the fact that they continued and grew is worrisome. Fact Set Caption outside of wrapper for normal article images Riesner prediction of a correction would have been accurate more than a year ago, since that is when divergences started.
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