The Gold/SPX ratio is still trending down but has ticked back above the resistance area. More work needed, obviously. The trend remains toward cyclical and risk ‘on’ by this picture (as it does by the Silver/Gold ratio as shown this morning).
The NDX/SPX ratio is still intact.
SOX/NDX is intact also after taking a much needed correction.
30yr yield is bouncing (as is the 10yr). I thought that it might drop further to test the SMA 50, but so far no dice. This is the picture of the pause in the macro reflation that we anticipated in NFTRH 637. I’d have rather seen TYX bang the SMA 50 before bouncing again. It may still do that.
Commodities are holding serve thus far at the EMA 20.
Banks have not gotten the rising yield memo as yet. Recall that we’ve planned on a gap fill and SMA 50 test on KRE.
Of course the reflation has no ordained right to succeed and if the materials sector does not hold here even if the reflation is to resume at some point, it could get uncomfortable in the interim.