Around 12:15 ET the $SPY diverged with conviction from the price of $TLT. Notice how this divergence was the precursor for the ES trading into 1523.50 highs.
The morning session saw prices upward though much all non directional chop came during the 1 hour from 11:15am till 12:15pm as TLT and SPY prices were touching each other.
1 min SPY vs TLT – the triangle is convergence. hypotenuse is max divergence
Further divergence means higher prices for equities into the final hour…. what is troublesome to the upside thesis today is DX strength as the index is eyeing 2013 highs over 82. Dollar strength is causing CL to flop around like a dead fish.
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