An Oversold US 5Y – 3M yield curve is good for SPX longs

Checking in to look at the U.S. 5 year bond yield minus 3 month bill rate (yield curve)

Rather than watching whether this yield curve inverts in order to predict a recession…….this study shows you that when this yield curve trades Oversold on a Weekly basis (irrespective of its percentage spread), it portends the beginning of a new or an extension of an immediately preceding rally in the S&P 500.

The most recent moment occurred this past July.

October 14, ,2022

by Rob Zdravevski

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