Bottoming signs or not
|S&P 500 didn‘t decline below Friday‘s lows, and opening bell‘s selling was steeply reversed within one hourlycandle, making the posture neutral – just neutral as neither side is having success moving prices much this week (before NVDA earnings). Still, it was possible to read the intermarket, sectoral flows and deliver +20 ES pts intraday even though swing trading outlook hasn‘t changed. Doesn‘t it though look as part of a bottoming process, provided that certain additional condition(s) are met?
That‘s the question I answer in the premium part. We‘re having both the expected consolidation in yields kickin in, it‘s making the dollar pause its ascent, and that allows for China trades to move a little higher (all within their consolidation of the steep ascent during the golden week – these stocks in the current post-election environment must be considered as sideways, not yet ready to embark on a solid uptrend).
Let‘s examine VIX and yields as they stand now – keep paying attention to Bitcoin moves too.
Let‘s mve right into the charts (all courtesy of www.stockcharts.com) – today‘s full scale article contains 3 more of them, with commentaries.
Gold, Silver and Miners
The short-term direction is up in precious metals for today – let‘s see how much more basing will be required, I think the bulls truly need more time to start running again, and once yields with dollar turn up, gold and silver will notice. Summed up, I don‘t trust the current upturn in precious metals to last in the way that yesterday‘s move alone would indicate.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.