Today’s Chart of the Day was shared by Steve Strazza (@sstrazza). It's a ratio chart of Stocks vs. Bonds ($SPY/TLT), along with the Russell 2000 index over the past couple of years. As a reminder, when the ratio is rising, it means Stocks are outperforming Bonds and vice versa. Steve points out that this risk ratio broke out of a six-month consolidation in today's session. In a comment to The Chart Report, Steve said " It's hard to argue that SPY/TLT resolving higher could be anything but bullish for risk assets and the broader stock market. Also, this breakout should bode well for Small-Caps given that the Russell 2000 has been trading in tandem with this ratio for a while now."
Chart of the Day - Tuesday, September 7th, 2021
September 7, 2021
