Uncertainty is mounting as the new omicron covid variant adds to economic concerns like inflation.
This week, I shared an article looking at potential topping formations on the Transportation Sector (IYT) and small-cap Russell 2000 Index (IWM).
Here we revisit these charts and topping formation, while introducing another potential warning sign.
As you can see in today’s chart 3-pack, we added the 10-Year US Treasury Yield to the mix. In 2018, yields, transports, and small caps peaked at the same time. Then in 2020 they bottomed together during the covid crisis.
Twin Peaks once again?
Could this trio be topping again in 2021? Bearish divergences (lower highs) have emerged and offer the potential for more downside. In my humble opinion, bulls better step up and turn this situation around… and soon! Stay tuned!
This article was first written for See It Markets.com. To see the original post CLICK HERE.
