ES ZN Weekly Chart

ZN and ES Divergence

ES ZN Weekly ChartHas the strength in the 10 Year Treasury Note (ZN) been keeping a lid on the S&P Futures (ES)? Looks like equity investors are getting cold feet pre-QE.

Over the last week the 10Yr has shown consistent strength climbing from a low of 132.055 to 133. 275 while over the same period ES as come from $1424.91 down to $1411.50.

Under popular logic this divergence is normal. If the two trends continue we should see weakness in the S&P Futures.

This chart is worth considering.