The US10Y yield continues to slip after the 200DMA rejection at 1.41%. We've now lost weekly MA supports as well, including the 100MA (w) at 1.1988%, and the, 50MA (w) at 1.1961%, and absent a recapture by EOW, we could to be on the verge of a massive puke toward the August 2020 lows around .50%. The last time this happened, of course, was February 2020 just before the 35% market crash. Let's see if history rhymes.
After a solid rejection at resistance, the dollar ( DXY ) saw notable support at the 50MA (w) around 91.70, and is hovering just above around 92 as we approach the open. If sentiment is in fact about to shift negative, the dollar may be in the midst of a technical retest of the 50MA (w), before setting up for a retest of the once again. Let's see if the bulls can defend the 50MA (w) into the weekend.
In , the has been making higher lows for 6 weeks in a row, and is sitting at a 19 handle ahead of the cash open. The descending trendline is still holding as resistance for now, but judging by the on the weekly time frame, and the PA off recent multi-year ascending trendline support, we're likely at the onset of another major spike in the . First, we'll need to see the 25 level captured on the weekly candle, which would set us up for a second leg higher toward the upper band of the around 50.
Have a great day of trade, my friends, and let's see how the cookie crumbles this week. Cheers! Michael.
* I am/we are currently long UVXY , HUV .
Heading lower imho. Booked solid gains across the board in CL VX ES NQ RTY.
4408 capping ES at the moment the UTL. Added back VIX, nothing else yet.
Taking the rest of the day off, you be well Michael.