Bank Index Vs. SPX, Still In An Uptrend

By Gary Tanashian of Notes From The Rabbit Hole

NFTRH & Biiwii's Unique Market Perspectives • Jan 28, 2014 at 4:11 PM EST

The ratio that has led the most intense phase of the bull – logically in tandem with rising long term yields (vs. ZIRP on the Fed Funds) – the Bank Index vs. SPX is still in its uptrend channel.

While the nominal indexes struggle to hold an important ‘higher low’ on the recent downside theatrics, the ratio that has led the most intense phase of the bull – logically in tandem with rising long term yields (vs. ZIRP on the Fed Funds) – the Bank Index vs. SPX is still in its uptrend channel.

So if the markets do end up holding a higher low there is no negative divergence yet by this indicator. FYI.