Yesterday, copper popped higher on very high volume. While it printed a small bar, which I really don't like, the upward gap is impressive. Plus, the gap has come at a technically important time.
The dollar is right at important technical levels -- highs from early October. The EMAs are still strong, but the A/D and CMF are weakening, which is concerning.
The dollar has been moving sideways for the last six days, using the late and mid-December high points as technical support. We need to see the dollar move through the 23 price level.
The treasury market is consolidating and not selling off -- at least not yet.
The above two charts of the IWMs and SPYs illustrate my continued concerns with the equity markets. The IWMs stayed in a tight range for about a week and a half before drifting higher over the last three sessions. The SPYs have traded in two tight ranges for the last week and a half, but there hasn't been a lot of strong intra-day action.
The QQQs are the best looking average, with a clear uptrend, but also have the same issue -- trading in ranges, popping a bit, and then trading sideways. The fact that only one average has a good chart is also concerning.
2 comments:
Bondad,
When I see that the yield on a 10-year T-Note is now less than it was at the very bottom of the stock market in Spring 09, it makes me think that investors are MORE afraid of stocks now, than they were then. Is this a correct interpretation? If so, then people are VERY afraid of stocks right now!
Anon --
The low yield on all treasuries is a big problem. While some of it is fear based on the EU situation, I also think the conservative bid from the US perspective is also a big deal.
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