USD is the anti-market. It has dropped to within a whisker of the main target, which is the SMA 200 and is now bouncing.
The major daily chart trend for USD is up and until/unless it breaks down below 105 this can be considered a healthy test. The bounce will either reassert USD’s preeminence in the markets or USD will fail into a future breakdown. The 108 area will be the first key short-term resistance to watch. If it takes that out, then 110 and the SMA 50 will be key.
The bottom line is that if the anti-market bounces, market disturbances are likely. If it goes back on the bull then the bear market in broad markets should resume. If it bounces and fails, then we’d be back on the seasonal party plan.
Just some perspective through the eyes of Uncle Buck.
Separately, here is the yield curve burrowing southward. The implication is still ‘Fed in full control’ and market participants quaking in their boots about the hawking Fed. This chart shows yesterday’s close for the YC and this morning it is unchanged. Typically, a flattening curve (inverted or not) is not positive for gold. So, along with the likes of the ‘real 10yr yield’ and a few others, the macro fundamental picture for gold/miners remains incomplete, no matter the arguments to the contrary by the perma-pompoms.
