Two important market signalers are firm together this morning. The US dollar index is, in typical fashion for this market that flips its signals daily, holding after we noted its suspect look yesterday as it bored down into the support area. It reversed yesterday and is taking on the look of a potential bull flag now. Jeez, what a market.
Of more concern * is that the Gold/Silver ratio is also posturing positive after having held its positive bias on the pullback.
So the ‘will they or won’t they?’ Kabuki dance goes on, but if the do (rise together), it will signal market stress, especially for the inflation trades.
* Unless of course you are prepared for it, in which case it will eventually bring opportunity.
