We see that for the last day and a half, the SPYs have traded in a downward trend. This is not the most pronounced trend we will see, but it is a trend nonetheless. My guess is we've seen all the buying we're going to see from the rate cut rally and now traders are waiting for the next move in one direction or the other.
The five day chart shows that we're approaching the 38.2% Fibonacci level from the latest rally.
On the daily chart we see the SPYs taking a breather. A sell-off after the last two days was to be expected. I wouldn't be surprised to see a continuation of this pattern tomorrow.
Look at how gold jumped over the last two days. Traders are obviously concerned about the inflationary ramifications of the rate cut.
The two year daily chart of the gold ETF shows we're now at a record high. Record highs have a way of making further record highs. Also notice the gold ETF has a nice two year base to work upwards from. In other words, there is clearly upward momentum in the gold ETF right now.
The long-Treasury ETF shows the bond traders are selling as they too are concerned about inflationary pressures increasing from the rate cut.
The markets show a very clear pattern. Traders are worried about inflation increasing.
