Bear (Beer) flags in two seemingly unrelated items
But are they actually unrelated? Neither of them likes the rise in long-term yields currently ongoing. So there’s a common thread.
The ratio of growth stocks to value stocks and the Gold ETF each sport broken down bear flags. The ratio is bouncing to see if it can undo its flag while GLD appears on its way down for a test of the low or a lower low.
We’ve been watching Thing 1 degrade for several weeks in NFTRH’s Market Internals segment (implying rotation) and noted the likelihood of Thing 2 in updates and weekend reports. Gold’s technical breakdown is in contrast to its positive contrarian sentiment profile but by the same token, will only make said profile better. Patient bugs need apply. Impatient ones need get steamrolled.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter @NFTRHgt.
