Uncle Buck has taken out the moving averages and will try to establish that as short-term support. Having made a lower low to the Feb. 2nd low, it would need to get above the Feb. 14th high of 104.98 to re-bull. Currently, it is at minor resistance. Still a technically neutral picture on the daily chart (long-term charts have tested strong support, and that needs to be kept in mind).
Gold/Silver ratio is relatively weak on the short-term, but importantly, it never did lose its gentle uptrend. If this were a stock those bullish on the GSR would buy the uptrending drop to the SMA 200.
Bottom Line
If USD remains firm and GSR gently trends up, that may favor the Tech related Goldilocks stuff.
If they start to impulse higher that would mean a developing liquidity crisis with most asset markets under pressre. No sign of this option yet.
If they drop together, the anti-USD stuff (commodities, PMs, cyclicals to varying degrees) would regain a tailwind.
One thing we can say is that the market is still acting oh so predictably. It appears we have some really literal machine programmers out there. It’s as if they never heard of the old fashioned terms “buy the news” or “sell the news”. It always seems to be ‘do what the news implies!’ these days. Most recently the news said a bump up in inflation signals = a renewed bout of Fed hawk fears.
I will be out much of the day. So if moves are made they will not show up in the trade log until later.
