The momentum is still , and this week the price got rejected at the upper line of the . If this continues downards, then the economy remains in the same state. Central banks are printing currency at an unprecedented rate, and is showing on commodoties and stocks and everything else. Governments are sinking more into debt, and the best place to put your money remains the stock market. That is until this breaks. Because when it does, the bond yields will accelerate upwards. It will become more costly to borrow money. And the economy will slow down again. But this time, it is slowing down while everyone is extremely leveraged and deep in debt. We want to maximize our profit but we do not want to be caught in that state. That is why I pay attention to this chart and the DXY .
There are many charts that can indicate the same outcome, but I choose to focus on one only that does the job.
Now according to some Fibonacci levels, I predict another touch in October 2021. By then, perhaps the majority of zombie companies will have declared bankruptcy. Is it too soon for that? Will government regulation delay that even further? No idea. Too many factors to watch. So let's keep watching this one key chart.
This spike shows on the daily as breaking the resistance, but when you look at the weekly, it's not that serious. Plus a fake breakout happened before in October 2018, and this looks like it will end up the same.