Interesting correlation and a leading indicator I picked up from Russell Napier since November 2008. He gave me a tip about TIPS, available in his book Anatomy of a Bear. TIPS is one of the leading indicators used by RN.
In this correlative analysis, TIPS gave a heads up of the unsustainable rally of the equity market with a bearish divergence in the MACD. Now that it has broken the second uptrend line, and MACD crossed down, it is good indication that done and dusted a top is done.
The blue line is the S&P500 futures ES1! for reference. You can see previously TIPS precedes the S&P500 in a retracement and a rally. The current time is a concomitant drop, which may indicate the volatility involved (and the depth perhaps).
In this correlative analysis, TIPS gave a heads up of the unsustainable rally of the equity market with a bearish divergence in the MACD. Now that it has broken the second uptrend line, and MACD crossed down, it is good indication that done and dusted a top is done.
The blue line is the S&P500 futures ES1! for reference. You can see previously TIPS precedes the S&P500 in a retracement and a rally. The current time is a concomitant drop, which may indicate the volatility involved (and the depth perhaps).
