The market has been drifting lower for 3 days. The constant dripping has now reached critical trend support at 4352. Will it hold? The 5 day cycle projection is final at 4360. But if this does not hold, then we could see a drop to the next support level around 4332-35. That “should” hold.
Here’s the two hour bar perspective below. Interesting, no?
If this hold, it’s still a bullish pattern. We Have Met the Resistance
Meanwhile, over at the Treasury market, those massive record short hedges that the hedge funds put on the 10 year Treasury aren’t working yet and they haven’t started unwinding them yet. If they’re not right about this, it’s still a potential fuse for a meltup in bond prices. We Now Know What is Driving the Rally
Then there’s gold. It’s on the verge of breaking down. Let’s see. Bonds rally. Gold sells off. That would screw everybody.
$180 billion of T-bill net issuance this week and rates haven’t risen? Hard to believe, Harry. We know why, and yep it’s short term bullish, but sows the seeds of a harvest of disaster.
For moron the markets, see:
- We Now Know What is Driving the Rally June 20, 2023
- We Have Met the Resistance June 20, 2023
- Gold Gets Nearer Important Cycle Lows June 18, 2023
- The Fed’s Slush Fund is Working June 16, 2023
- Swing Trade Chart Picks – Adding Late Cycle Buys June 16, 2023
- Investors Breathe Sigh of Relief But D-Day Is Now June 6, 2023
- Incomprehensible, That’s What You Are June 2, 2023
- Modestly Hedged Dealers, Record Short Hedge Funds Suggest Disaster Ahead May 25, 2023
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