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Sunday, June 26, 2011

Keystone's 2-10 Spread Indicator Failure

Keystone uses 255 as a 2-10 spread number that separates happy banksters using a steep yield curve to their advantage (over 255), from sad bankers that no longer have an advantageous yield curve (under 255).

Latest numbers; 10-year is 2.86% and 2- year is 0.33%

286-33=253 

Financials and banks are in a heap of trouble right now, Keystone's 255 spread number has failed; that means this sector will be weak and sick for quite some time. Broad markets cannot move up with sad banksters.

Keep watching the spread to see if it stays under 255. If market bulls want to move the indexes upward, the bulls must get the 2-10 spread back up and over 255.  If they cannot, then the broad market weakness will continue.

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