Don't Ignore This Chart!

Positive Relationship between the Nikkei and the US 10-year T-Note Yield


It may seem a rather strange relationship, but the Nikkei 225 ($NIKK) and the 10-year Treasury Yield ($TNX) have a positive relationship working. The chart below shows both rising and falling together since November 2009. Despite a setback over the last few days, both remain in uptrends overall. John Murphy elaborated on this positive correlation in his classic book on Intermarket Analysis in 2004

Click this image for a live chart

Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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