heading into the open DXY has taken back the SMA 50. FYI…
Daily chart technical snapshot of some key items
Gold is testing Friday’s break above the SMA 200. If that is successful it would be the first thing needed to turn bullish. Then 1860 would need to be taken out and then 1920 is the last man standing in the way. So the move above the SMA 200 is positive if it holds, but there would still be work to do.
Silver continues on its bounce. It has RSI and MACD similar to the HUI index, for which I added a couple new positions yesterday (MAG & MMX) in anticipation of a continued bounce (only). We’ll see on that. Regardless, 24.75 to 25 introduces the next resistance with 25.90 to 26 looking like formidable resistance.
Copper took out the SMA 50 yesterday and is easing this morning (despite a weak USD, below) to test that move. All we can say thus far is that it is still constructive as long as it holds the SMA 50.
Here is a picture of USD (DXY) doing what I assume the Jerome Powell’s jawbone intended, which is to back off the forces of liquidity contraction and put players back in an inflationary mindset. It is poking through the SMA 50 and testing the neckline to the inverted H&S (not fully shown on this chart). Anything can happen here. USD could rebel and wreck the macro or it could submit to policy control. Not a good look on RSI or MACD.
Fellow liquidity extractor Gold/Silver ratio is easing to its EMA 20. It is still a young uptrend, but it has also recently registered an overbought reading (in deflationary nervousness, at least) and the structure of the candles, RSI and MACD all look like they have the potential to guide the GSR to pull back further.
Again, is the Fed jawbone all powerful or will there be a rebellion among the negative market indicators? I don’t have the answer, but since dovish Powell spoke USD and GSR have submitted (and the 30yr Treasury yield Continuum continues to hold its right shoulder).
Finally, the Good Ship Lollipop (ES, representing the S&P 500) robo trends along on its still bullish way.