Equity markets preparing for the next wave of selling.
There are a few signs that equity markets could be on the verge of a fresh move to the downside. Here are a few charts to explain.
1. Equity/Bond Ratio
The ratio between equities bonds has rallied into a significant resistance zone and is showing signs of rolling over, this suggests the bullish momentum has stalled and we could be about to see a shift out of riskier assets (equities) and into safer havens (bonds).
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