The S&P 500 and Nasdaq are still sitting at long-term resistance, while the VIX is at long-term support. Refer to the charts from my previous post.
TNX (10-year note YIELD) continues to form a topping formation with bearish RSI divergence. Watch for the blue neckline to break down (a positive for gold and the yen)
UST (10-year note BOND) is basing above 14-year support. Watch for a breakout above the green downtrend line.
USD: There's a ton of chatter out there about how the US Dollar is breaking to the upside. The weekly chart shows this clearly. However, the monthly chart shows that there's mega resistance at the 82 level. This is just ~1% above current levels.
EFA:SPY ratio has a strong inverse relationship with US dollar. It is currently on price & RSI support. A breakout above the blue downtrend line would be bad news for the dollar (especially now that the dollar is nearing strong resistance).
YEN is the other key chart I'm watching in the currency space. We should get wedge resolution soon.
Many commodity charts are simultaneously retesting their multi-year breakouts as new support. This can be seen on:
- GNX and CCI commodity indices
- GOLD and the SILVER:GOLD Ratio
- GAS and OIL
Similar to the underlying commodities, the miners are also retesting multi-year breakouts as new support. This can be seen on:
- XME (Mining & Metals ETF)
- GDX, GDXJ, GLDX, SIL (Gold Miners)
KOL is breaking out of a 1-year base after its 3-year wedge breakout
REMX is forming a base after a 3-year wedge breakout.
URA is retesting a 1-year base breakout after making a 3-year wedge breakout.
EEM:SPY ratio is highly correlated with GDX. This ratio is breaking out of a wedge consolidation (daily chart) after a multi-year wedge breakout (weekly chart).
SSEC Shanghai Index has finally made the breakout from an 8-year wedge!
Hope you enjoyed this analysis and have a great weekend