It’s the metallic indicators again, doggedly refusing to negate their bearish turn. Thanks to subscriber Joe for giving me the heads up on this. The first part of my day was spent rescuing my wife from her flat tire, giving her my car and figuring out the spare tire inflation system that the Germans put in their cars these days so I could install it and get back home. So Joe’s heads up is appreciated, since I am a bit discombobulated.
PALL/GLD continues its decline, stock bounce or no stock bounce. It’s a counter-cyclical indicator.
Here is the weekly, further into negative territory. A cross of the moving averages would be the next negative signal, but this is not good as it stands.
The Industrial Metals are in better shape vs. gold, but have been bouncing with the stock market relief. The breakdown is intact.
The weekly shows the bounce as a flag that is testing the breakdown below the 2nd moving average.
The bottom line is that while no single indicator can predict the future, these two cyclical indicators remain in breakdown mode. That is just a fact. They have not turned down terminally, however. But by the same token they have not given the stock market any sort of positive ‘all clear’ indicator either. Quite the contrary.
Yesterday morning we had a cautionary review about why not to take the bait on the big pre-market downside. But that has now been relieved and the market is back to square one after a bounce to relieve that negative hype. A combination of nominal market technicals and indicators like the above should be used to gauge the process going forward.