Spying On The SPY by Hector Landazabal
Most of the signals that traders rely on for the equities market are derived from the equities market itself (such as price, patterns, volume, and breadth indicators). But there’s another dimension you can use. Get an independent window into the stock market by finding out what another asset class—the influential bond market—is telling us about it.
I often trade the SPY ETF. Like anyone else, before initiating a trade, I like to know if the equity is overvalued or undervalued, overbought or oversold, and whether it will probably go up, down, or range. The answers to these questions are provided by the market sooner or later ...