A rough day for the markets today, but it staged a bit of a comeback in the final hour.
Could it be that after the November Trump rally, we're now entering a period of consolidation? Looking at the chart below, it certainly looks likely.
spx.png
Compare the rally in late June of last year (post Brexit) with the Trump rally in November that looks to be consolidating. Let's hope we don't have another 4 1/2 month period of sideways market action.
Bonds had a nice rally today, as yields continue to fall. 10-year Treasuries now yield 2.33% compared to the high of 2.62% in Dec. The big driver there was the large gap down in the dollar, which finally broke the 50 DMA, something it hasn't done since late Sept. (See chart below).
uup.png
This also helped the PM's and miners. Let's see how long they can continue their rally.
The VIX system I use has finally triggered a sell signal today. That puts my composite system at a full -3 sell signal.
Good luck!
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