Industrial metals -- which had been trading in a range for the last month and a half, may have finally broken out. Ideally, we'd like to see a stronger candle on a move like this. However, prices have moved above the 50 day EMA for the first time in the last three months. We'll have to wait for follow-through, however.
Both the SPYs and QQQQs are in the same situation -- prices are right at resistance levels and the EMAs are in a tight range. The last time both averages were at these levels (right below the 50 day EMA), they retreated.
Notice how the long-end of the Treasury curve -- the TLTs are just hugging the trend line right now.
The 7-10 year part of the curve (the IEFs), however, are a long way from the trend line.
Gold continues to move lower, hugging its downward sloping trend line. Considering inflation is not an issue right now and Europe appears to be solving its debt problems, expect more downward pressure on gold.
Notice that oil closed above the 50 day EMA for the first time in nearly three months. Also note the last two times oil was here it retreated.
