I am a little gun shy on video making until I can confirm why the SPX chart and audio were out of sync on the previous update. I think it was a setting at TradingView that flipped. Regardless, back to written format for now.
It’s a shenanigan filled FOMC week (surprise!) and balls are up in the air (decision points at hand). But one constant is the pair of the US dollar and the Gold/Silver ratio, AKA the 2 Horsemen of the Liquidity Apocalypse. In this case we flip the GSR over to its Silver/Gold self for a view of a potentially bullish situation happening that could benefit the markets and negatively diverge USD, with the Fed hawking away as its main fundamental support.
US dollar index (DXY) has tickled the March high twice, yesterday and this morning. As noted in the most recent USD video, RSI has a funky (and toppy) look to it and now MACD may be starting to roll again. The bull trap option is still in play, and with a hawking Fed during FOMC week? So much the better, contrary wise.
Silver was curiously firm yesterday and is positive today. More importantly, its ratio to gold is firm also. If there were to be a bearish market liquidity situation in the wake of the FOMC, this indicator would drop. As yet, it’s doing the opposite. Sure, it could drop at any time, but in its current state it is flashing the opposite potential. If SGR keeps rising it would be a strong signal AGAINST the US dollar, and if the US dollar declines it would signal the anti-USD trades back on (Captain Obvious).
We may need to clear FOMC week to see how things settle. But the above is important, as it is an interesting divergence going on beneath the short-term bearish market’s surface. It definitely has me thinking about ridding myself of the gold miner partial hedge. Possibly other bear positions as well. But follow through here (DXY down, SGR up) would be needed.
