Watch out for an increasing yield spread

The chart below shows the 10 month trend in the S&P 500 and the spread between 1 year and 20 year treasuries.

As spreads increase on inflation concerns, market participants will push the 20 year yield higher.

This means trouble for stocks.

The spread may top out in a range of 2-4%.

Currently the spread is a little over 2.1% and rising.